:: Australian Dollar: The Aussie experienced a stunning turnaround in Asia yesterday rallying consistently throughout the day from 0.8140 to enter offshore exchange back above 82 cents. The local housing market continues to prove resilient as building approvals and housing finance data both came in higher than expected. With European confidence coming in better than expected and U.S equity markets finishing higher the AUD opens this morning around 0.8250 against the Greenback, 0.5860 Euro and 78.80 Japanese Yen.
- We expect a range today in the AUD/USD rate of 0.8210 to 0.8285
:: Great Britain Pound: In what was a relatively quiet overnight session the Pound Sterling managed to hold on to gains made in Asia yesterday, maintaining support at 1.6450 to test 1.6520 on several occasions. With no meaningful U.K economic data direction was dictated by positive risk sentiment which saw investors move out of the Greenback. The rally in the Pound Sterling however is being met with hesitation by many traders given the perilous state of the U.K economy with next week's BoE meeting, PPI and Industrial Production data holding the key to the longer term direction of the Pound Sterling. Today sees the GBP open at 1.6495 and 1.9980 against the U.S and Australian dollars.
- We expect a range today in the GBP/AUD rate of 1.9880 to 2.0080
:: New Zealand Dollar: The Kiwi dollar opened up under immense selling pressure yesterday after the very dovish RBNZ release following the banks interest rate meeting. Despite dropping dramatically from 0.6565 to 0.6475 during the morning session the NZD/USD spent the afternoon clawing back its losses and entered offshore trade back above 65 cents. Sentiment on offshore markets was positive overnight lifting the NZD to a high of 0.6540 before sliding slightly to open this morning at 0.6510. The AUD/NZD cross rate continued to rise and opens this morning at 1.2650 having gained over 2% over the last 24 hours.
- We expect a range today in the NZD/USD rate of 0.6485 to 0.6550
:: Majors: The Euro received a boost in early offshore trade following a better than expected result in the Euro-zone economic confidence survey for the month of July. The growing confidence has led to many economists predicting that the European economy has seen the worst of the recession and was enough to push EUR/USD back towards 1.4100. Also adding support to the move higher in early offshore trade was German unemployment which remained at a seasonally adjusted 8.3% against forecasts of a rise to 8.3%. U.S equity markets rallied overnight finishing up around 1% after positive talk from U.S President Obama at a talk in North Carolina. All eyes however will be firmly fixed on this evenings second quarter U.S GDP number with annualised economic growth expected to decline 1.5%, a vast improvement from the first quarter result of -5.5%.
:: Data Releases:
• AUD: Jul TD Secutities Inflation & Jun Private Sector Credit
• NZD: No Data Expected today
• USD: Q2 GDP, Q2 PCE & Jul Chicago PMI
• GBP: Jil GfK Consumer Confidence Survey
• EUR: Jun Unemployment & Jul CPI Estimate
• JPY: Jun Housing Starts & Jun Construction Orders
• CAD: May GDP