:: Australian Dollar: Positive sentiment towards the Aussie dollar continued on Friday entering offshore trade marginally above 79 cents amidst continued concern over the 1.75 trillion USD government debt. The AUD/USD traded above 80 cents on Friday night for the first time since the 1st of October last year and has gapped higher this morning to open around 0.8030 with investors fleeing the Greenback amidst continued fears surrounding the massive U.S government debt. With local equity markets expected to follow the lead from offshore the AUD is likely to continue to hold firm in local trade today.
- We expect a range today in the AUD/USD rate of 0.7980 to 0.8060
:: Great Britain Pound: The Pound Sterling surge that began at 1.5950 in late Asian trade on Friday extended throughout the offshore session to post a top near 1.6200 against the Greenback, its highest level since November 2008. Early momentum came from a surprise 1.2% increase in the May Nationwide House Price index with persistent weakness in the U.S dollar the main driver during the NY time-zone. This morning sees the GBP open at 1.6185 and 2.0150 against the U.S and Australian dollars respectively.
- We expect a range today in the GBP/AUD rate of 2.0075 to 2.0220
:: New Zealand Dollar: Like its Trans Tasman cousin the Kiwi Dollar moved rapidly on Friday, spiking from a 0.6120 in late Asian trade to a high of 0.6420 at close in New York. The return of risk appetite and a move away from U.S dollars was seen by as the driver for such a move north. High yielding currencies, like the New Zealand and Australian Dollars are still very attractive for offshore investors however these moves are open to extreme volatility should negative data begin to appear in the respective local markets. With no data out of New Zealand this week, the kiwi will take direction from global events and happenings.
- We expect a range today in the NZD/USD rate of 0.6350 to 0.6450
:: Majors: Inflation in the Euro-zone dropped more than expected to 0% during the month of May reigniting fears of deflation across the 16 member nations. The news however did little to halt the progress of the Euro which continued to advance against the Greenback during Friday's offshore session. After overcoming early European jitters following the data announcement EUR/USD popped through 1.4 to eventually post a high above 1.4150 during New York trade spurred on by persistent concerns over the massive U.S deficit. With mixed economic data coming in the form of better than expected Uni of Michigan Confidence survey, lower than forecast Q1 PCE and a larger than expected downward revision to Q1 GDP sentiment towards the U.S dollar remains bearish. The big dollar also took a dive against the Japanese Yen dropping from 96.90 to bottom at 95.00 in late Friday trade with the U.S treasury Secretary Geithner visiting Beijing to reassure China that its loans to the U.S are safe. He told reporters “No one is going to be more concerned about future deficits than we are” on his way to meet with Premier Wen Jiabao, who in March called for the U.S. to “guarantee the safety of China's assets.”
:: Data Releases:
- AUD: Apr Retail Sales, Q1 invetories & Apr TD Securities Inflation
- NZD: No Data Expected today
- USD: Apr Personal Income, Apr PCE, May ISM Manufacturing & Apr Construction Spending
- GBP: May Halifax House Prices
- EUR: May PMI
- JPY: May Vehicle Sales & Apr Labour Cash Earnings
- CAD: Mar GDP & Apr Raw Materials Price index
:: Note: The above exchange rates are based on interbank rates. If you are considering a transfer then please login, register or call us for a live dealing rate.