Australian Dollar:

In what a capped a good week for the Australian Currency, data out on Friday showed import prices rose by 0.8 percent for the month of June increasing by much a larger degree than economists forecast. With risk appetite surging in response to further financial aid being approved for Greece midweek, the Australian Dollar advanced for a second straight day against its US Counterpart reaching an intra-day high of 1.0874 on Friday.

[Join us on the Forex Traders Community]

As the currency entered the offshore session investors did take the opportunity to sell the Australian Dollar as it opens higher this morning currently trading at a rate of 1.0844. With the market looking ahead to PPI figures due for release today and the all-important inflationary CPI Figures on Wednesday a further price advancement remains a distinct possibly should such readings come in above expectation

We expect a range today of 1.0790 – 1.0890

New Zealand Dollar:

The New Zealand Dollar was bolstered last week as global risk sentiment improved, spurring demand for New Zealand''s Currency. The kiwi reached an all-time post float high of 0.8674 on Friday rebounding nicely from the low of 0.8582 seen earlier in the Asian Session. Whilst the kiwi did shed around 30 Basis points during offshore trade we see the currency open noticeably higher this morning currently buying 86.49 US Cents.

Looking ahead this week larger than average ranges are again expected with The Reserve Bank of New Zealand set to review its official cash rate on Thursday. With such decisions likely to dominate local headlines, further volatility is also expected as global markets nervously await any updates regarding the ongoing efforts of US Congressmen to raise the Nationals debt limit before the August 2 deadline.

We expect a range today of 0.8580 -0.8680

Great British Pound:

In what proved to be a good week for the Great British Pound the Sterling opens stronger against its US Counterpart this morning currently trading at a rate of 1.6336. Whilst there was a general move away from the Greenback over the course of last week the UK economic docket is packed with data in the coming days, highlighted by GDP figures which are due for release tomorrow.

Despite some slightly improved fundamentals surfacing out of the British economy last week any further advancements in the Nations currency are likely to be capped should such readings demonstrate a smaller than expected level of growth. Meanwhile this morning the Sterling opens relatively unchanged against the Australian Dollar at a rate of 1.5052.

We expect a range today of 1.5000 – 1.5100

Majors:

The Dow Jones finished 0.34 percent lower on Friday with the US Dollar also falling to an overnight low of 78.20 against the Japanese Yen. As US Lawmakers failed to move closer to an agreement on raising the Nation’s 14.3 Trillion Dollar Debt ceiling, a rating agency down-grade appears the more likely scenario in the medium term.

With markets still nervously awaiting a short-term extension on debt obligations the Greenback is likely to remain under some mild selling pressure. Meanwhile in the EURO Zone overnight the EURO was sold to reach an overnight low of 1.4323 against its US Counterpart, as upper resistance appears well established above the 1.4450 level the currency has consolidated well this morning currently trading at a rate of 1.4408. With some solid steps forwards being taken out of the European Summit last week attention in coming days will again turn to any developments out of US.

Data releases

AUD: PPI q/q

NZD: No Data Today

JPY: BOJ Gov Shirakawa Speaks

GBP: Nationwide HPI m/m, BBA Mortgage Approvals

EUR: Belgium NBB Business Climate

USD: No Data Today

More from IBT Markets:
Follow us on Facebook.
Follow us on Twitter.
Subscribe to get this delivered to your inbox daily