AUD & NZD record steady gains

Australian Dollar:

Remaining range bound during yesterday’s intraday session the Aussie dollar struggled to extend gains beyond the 0.7200 mark when valued against its US Counterpart.  Breaking resistance as North America entered the frame, the Aussie touched highs just above the 0.7250 handle as comments from Glenn Stevens signalled that its likely interest rates would remain unchanged during December. Making the AUD’s performance even more impressive over 24 hours has been the extend of the support particularly considering the fact iron ore prices fell to their lowest level in six years whilst a report from the United States showed a healthy degree of growth during the third quarter of this years. Opening stronger this morning the Aussie currently buys 72.44 US Cents.

• We expect a range today of 0.7190 – 0.7270

New Zealand Dollar:

Having traded between a low of 0.6517 and a high of 0.6558 when valued against its US Counterpart over the past 24 hours, the New Zealand dollar opens this morning stronger, currently trading closer to the northern side of its recent range at a rate of 0.6549. Whilst investors were forced to sit through another quite start, a softening greenback has played a broadly supportive role for the Kiwi as the only domestic highlight this week comes in the form of tomorrow’s trade balance release.  

• We expect a range today of 0.6500 - 0.6600

Great British Pound:

Triggering fresh bouts of selling for an already weak looking Great British Pound, Bank of England Governor Mark Carney addressed MP’s on the Treasury Committee last night stating that interest rates are likely to remain low “for some time”. Not expecting conditions to be met for higher rates until at least mid-2016, dovish expectations have been well and truly fulfilled overnight as the underlying economic strength required to see tighter policy remains absent. Opening 0.4 percent lower at a rate of 1.5084 when valued against its US Counterpart if a medium-term upward trajectory is to be re-established the BOE will first and foremost need to turn less dovish. In what’s short week given US Thanksgiving, updated Treasury forecasts this evening will preview the government’s budget for the coming year.

• We expect a range today of 2 .0780 - 2.0870

Majors:

In a move which suggests the US Dollars bull run may still have some further legs left in it, a report overnight showed the world’s largest economy grew at a quicker than forecast pace during the third quarter of this year. With the Commerce Department revealing an annualised growth pace of 2.1 percent, versus the consensus 1.5 percent reported last month, the one area of concern surrounds the fact businesses may be sitting on excessive inventory. Balancing the ledger further, consumer confidence fell during November, dropping to a 12 month-low whilst broader barometers of risk were shaken following signs of heightened conflict on the Turkish/Russian border. Finally finding some support the euro opens marginally stronger when valued against the greenback at a rate 1.0644 whilst the world’s reserve currency is weaker against the Yen at 122.484.

Data releases

• AUD: No data today
• NZD: No data today  
• JPY: Monetary Policy Meeting minutes
• GBP: Autumn Forecast Statement
• EUR: No data today
• USD: Core durable goods orders m/m, Unemployment claims, Personal spending m/m