Daily Forex Forecast 7/04/2011
Australian Dollar:
The Australian Dollar enjoyed a strong week across the board opening this morning noticeably higher at a rate of 1.0781 against its US Counterpart. Data out of the Australian economy was relatively mixed on Friday with the AIG Manufacturing Index rising from 47.7 in May to 52.9 in June with such an expansive figure offset by new home sales data showing a negative reading of minus 0.2 percent for the month of May.
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Overall, despite a mixed bag of releases the Aussie did well to advance to an overnight high of 1.0789 a full cent higher than its low earlier in the session of 1.0673.
Meanwhile this morning with Retail Sales Figures due for the release at 1130am and a rates decision expected out of the RBA tomorrow the week ahead for the Australian Currency will be largely dictated by the accompany commentary of Governor Glenn Stevens.
We expect a range today of 1.0760 - 1.0860
New Zealand Dollar:
Despite a relatively subdued start to the day, the New Zealand Dollar again advanced overnight on Friday trading as high as 0.8318 against its US Counterpart. In what proved a positive week for the kiwi the currency was bolstered by a general shift in global risk-appetite amid the approval of Greek Austerity measures boosting investors demand for higher-yielding assets such as the New Zealand Dollar. With global equities also finishing the week in positive territory and US Manufacturing Data surprising the market on the upside we see the kiwi open higher this morning currently buying 82.75 US Cents. Meanwhile on the domestic data front this week all eyes will be on National GDP figures due for release Wednesday.
We expect a range today of 0.8230- 0.8310
Great British Pound:
The Great British Pound opens relatively unchanged this morning currently trading at a rate of 1.6065 against its US Counterpart. As the Sterling struggles to cling to support levels around the 1.60 Level, the broader UK Economy continues to search for improved economic data with reports out last week showing UK Confidence and Manufacturing Growth unexpectedly slowed. Despite the poor results the Pound managed to find some support as Investors Confidence in the neighbouring Euro Zone was again bolstered by the approval of further aid payment for the highly indebted Greece. Meanwhile the Sterling opens significantly lower against the Australian Dollar this morning currently trading at a rate of 1.4890.
We expect a range today of 1.4870 - 1.4990
Majors:
US Stocks posted the biggest weekly rally in two years with the Dow Jones rallying 648 Points. With
ISM manufacturing figures released out of the US on Friday coming in better than expected posting a reading of 55.3 against a forecasted figure of 51.9, such results are even more significant given the recent struggles of both China and Europe in spurring growth and output. Off the back of such results the Greenback strengthened slightly against the Yen opening this morning a rate of 80.794. Meanwhile in Europe, following a week of above average ranges the EURO consolidated its recent rally and after falling to a low of 1.4435 against its US Counterpart has done well to open this morning at a rate of 1.4543. Dominating headlines out of Europe on Friday was again news from Greece, with reports that the Euro Area has approved its share of a $17.4 Billion Aid payment for Greece providing further support for the EURO Currency
Data releases
AUD: MI Inflation Gauge m/m, ANZ Job Advertisements m/m, Building Approvals m/m, Retail Sales m/m.
NZD: ANZ Commodity Prices
JPY: Monetary Base y/y
GBP: Halifax HPI m/m, Construction PMI, Housing Equity Withdrawal q/q
EUR: PPI m/m
USD: Bank Holiday
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