Friday, 30 April 2010 - Market Commentary

:: Australian Dollar: The Aussie spent the last 24 hours trading above US92 cents and is supported by our yield advantage after the U.S. Federal Reserve kept interest rates unchanged this week and maintained their oft-repeated mantra to leave interest rates at exceptionally low levels for an extended period of time. Given the current turbulence in offshore financial markets, the Aussie continues to show remarkable resilience and opens this morning at 0.9270 after hitting an overnight high of 0.9293. The local unit also remains strong on the cross-rates and opens just beneath 0.7000 against the Euro.

- We expect a range today in the AUD/USD rate of 0.9220 to 0.9300

:: Great Britain Pound: Pound Sterling (1.5323) rose against the greenback for the first time in 3 days on positive economic data. A Nationwide Building Society survey said U.K. house prices rose 1 per cent in April and are up 10.5 per cent from a year earlier. However, the pound is likely to remain under pressure near-term on concerns the U.K. will struggle to narrow its budget deficit. The pound has lost over 5 per cent against the U.S. Dollar this calendar year. Meanwhile, the pound is higher against both the Australian Dollar (1.6520) and the New Zealand Dollar (2.1170).

- We expect a range today in the GBP/AUD rate of 1.6460 to 1.6560

:: New Zealand Dollar: The New Zealand Dollar opens higher against the greenback today at 0.7230. The kiwi hit an intraday low of 0.7150 after the Reserve Bank of New Zealand (RBNZ) kept interest rates on hold at 2.5 per cent. Supporting the currency were comments by RBNZ Governor Alan Bollard who said interest rates will rise over the coming months as the economy recovers. The release yesterday of a better-than-expected trade surplus of NZ$567m in March also supported the local unit. Meanwhile, the kiwi opens higher against the Australian Dollar at 0.7790.

- We expect a range today in the NZD/USD rate of 0.7190 to 0.7260

:: Majors: After hitting a one-year low of 1.3115 in recent days, the Euro moved higher last night as European Union officials move closer to finalising discussions on the Greek aid package. The Euro opens today at 1.3224 against the greenback and hit an overnight high of 1.3278. Better-than-expected economic data also helped the 16-nation currency as German unemployment fell to 7.8 per cent in April from 8 per cent a month earlier. Meanwhile, initial jobless claims in the United States fell by 11,000 to 448,000 in the week ending April 24 adding to signs of an economic rebound. The Greenback opens steady against the Japanese Yen at 94.06.

:: Data Releases:

  • AUD: Private Credt, March
  • CAD: No data today
  • EUR: EZ Unemployment rate, March
  • GBP: No data today
  • JPY: Bank of Japan interest rate decision
  • NZD: Building Consents, March
  • USD: GDP, Q1