:: Australian Dollar: The Aussie dollar has traded in a half cent range for the majority of the last 24 hours bouncing between 0.9110 and 0.9160 opening this morning near the top at 0.9155. Yesterdays much anticipated Australian employment report disappointed the market somewhat with only 400 jobs created in February against expectations of a result closer to 15k however headline unemployment remained low at 5.3%. The news saw the AUD/USD sell off from 0.9140 to 0.9110 before a steady fight back in late afternoon exchange following upbeat Chinese data with offshore markets eventually taking it back above 0.9150. With no local economic data scheduled for release today the AUD is likely to remain range bound in Asia before the release of key data out of Europe and the U.S this evening.
- We expect a range today in the AUD/USD rate of 0.9125 to 0.9180
:: Great Britain Pound: After exchanging within a tight band between 1.4945 and 1.4985 in Asia yesterday the Pound Sterling came to life against the Greenback overnight, popping back above 1.5 to open this morning on its highs at 1.5060. Short covering aided the swift move higher however as the Greenback firmed slightly across the board moves on GBP/USD were relatively well contained ahead of technical resistance at 1.5085. The GBP/AUD cross rate bounced from its overnight low at 1.6335 to open this morning at 1.6450 which comes as some welcome relief to those seeking to exchange Pounds into Aussie dollars.
- We expect a range today in the GBP/AUD rate of 1.6380 to 1.6520
:: New Zealand Dollar: The Kiwi dollar was one of the big movers in Asia yesterday losing a cent against the Greenback as it swiftly fell from 0.7075 to an intraday low of 0.6975. The move came following the decision of the RBNZ to keep rates on hold at 2.5% with the central bank delivering a relatively dovish statement maintaining its stance on possible rate rises in mid 2010. In what was a slow grind higher during European trade the NZD/USD peaked at 0.7010 before another increase in volatility during the North American time-zone following the release of U.S Trade balance data which saw it move down to 0.6965 only to bounce straight back to this morning's open marginally above the 70 cent handle ahed of NZ Retail Sales data.
- We expect a range today in the NZD/USD rate of 0.6975 to 0.7050
:: Majors: Japanese economic growth came in slightly below expectations of a +1% result in Q4 2009 posting +0.9% taking annualised GDP to a healthy 3.8%. Despite some initial weakness in the Yen USD/JPY drifted to an intraday Asian low of 90.20, down from its open around 90.50 and entered offshore exchange at 90.35. Chinese economic data in the form of Retail Sales and Inflation both came in higher than expected giving risk appetite a boost in Asia. Overnight the U.S trade deficit surprised the market shrinking from 39.9 billion USD to 37.3 billion against economist forecasts for further widening to around 41 billion USD. The news gave the market some confidence boosting risk sentiment and the EUR/JPY which is seen as a barometer for risk appetite by European and U.S investors to an overnight high of 123.90, 0.7% higher than its low near 123. This morning sees the big dollar open near its highs at 90.60 against the Yen and 1.3675 Euro ahead of Euro-zone Industrial Production and U.S Retail Sales data which are likely to ensure a volatile end to the weeks trade
:: Data Releases:
- AUD: No Data Expected
- NZD: Jan Retail Sales & Feb REINZ House Sales
- USD: Feb Retail Sales, Mar Uni of Michigan Confidence & Jan Business Inventories
- GBP: No Data Expected
- EUR: Jan Industrial Production
- JPY: Jan Industrial Production & Jan Capacity Utilisation