US Dollar holds despite a mix of economic data releases

AUD / USD

Expected Range: 0.7505 - 0.7650

The Australian dollar moved lower through trade on Thursday testing key technical supports and touching intraday lows at 0.7582. The Aussie suffered at the hands of an appreciating Greenback as investors continue to increase expectations surrounding a December Federal Reserve interest rate hike. CME’s fed watch tool suggest 78.5% of analysts are pricing in a shift in Monetary Policy prompting a surge in demand for Treasury yields. The market is now looking to the Fed to raise rates and we may be seeing a shift in sentiment towards the AUD as cracks appear in its resilience. Yesterday’s drop below 0.7590 could signal the beginnings of a bearish turn however while the Aussie holds above 0.75 there is still scope for upside rallies. Attentions today turn to 3rd quarter U.S GDP numbers ahead of next week’s key RBA and FOMC policy meetings. 

NZD / USD

Expected Range: 0.7080 - 0.7160

Unable to keep pace with a stronger Greenback overnight the New Zealand dollar has fallen when valued against the worlds reserve currency. With yields on 10-year treasuries rising to as high as 1.87 percent, overall it has been a choppy session for global markets with earnings reports in the United States taking the steam out of any potential upside moves. Ahead of a US GDP print this evening, the New Zealand dollar remains on track to finish the week in familiar territory as it currently trades 0.3 percent below its Monday open. Marginally lower the New Zealand dollar currently buys 71.20 US Cents

GBP / AUD

Expected Range: 1.5950 - 1.6100

The Great British Pound once again dipped below the 1.2200 mark when valued against its US Counterpart yesterday despite a preliminary read of economic growth which managed to surprise market participants. Having earlier traded as high as 1.2271 the GBPUSD pair lost momentum following the release after GDP expanded by 0.5 percent during Q3 a number above the 0.3 percent gain which was forecast. Whilst appearing to have dodged any near-term economic damage in the aftermath of Britain’s decision to leave the European Union, markets will still be eager to digest next week’s policy decision by the Bank of England. Opening weaker versus the Greenback a rate of 1.2162 the Sterling is steady versus the Australian dollar (1.6022) whilst lower versus the New Zealand dollar (1.7077).

USD, EUR, JPY

The US Dollar remained strong against most major currencies in the last 24 hour period as a mix of data from the US managed to provide support for the Greenback. EUR/USD was still hovering around the 1.0900 handle as US Durable goods orders fell for the month of September along with Core capital goods orders, on the whole the September report shows a modestly weaker than expected equipment investment by businesses in the USA. On a positive note, a report showing the number of Americans filing for unemployment claims fell by 3,000 to 258,000 which indicates continuing labour market strength as these numbers have been under the 300,000 mark for over a year now. Meanwhile, the Dollar was near three-month highs against the Yen touching 105.35, a wait and see approach if the pair can hold on to these gains as the spotlight will be on The Bank of Japan next week as the central banks holds a policy meeting.