Small Trading Volumes Over Easter Break

AUD

The AUD opens at 0.7138 this morning after a brief trip over 0.72 cents late last week.  Trading volumes and volatility have been weak over the Easter break, AUD now sitting on support around the 0.7130 mark.  Risk appetite has been subdued in general terms with the major bourses losing a small amount of ground over the break, the ASX is elevated at 0.6285, Chinese stocks have taken a pounding however after their recent stellar run.  Oil price rallied again, up over 2% overnight. It's another quiet day for data, tomorrow's local CPI print is critial for the AUD's direction.  Markets are expecting a headline reading of 0.2% (0.5% previous).  Resistance is found at the recent high of 0.7206, support comes in at 0.7100.  

USD

U.S equity markets closed either side of flat yesterday, U.S yields made marginal gains.  The only data of note came in the form of March Existing Home Sales, which fell by 4.9% (-3.8% exp). The Chicago Fed Manufacturing Index printed as expected for the most part. The USD index has climbed back up to 97.28, but still cannot break through long-term resistance above 97.70, keeping the local unit in contention and bid above 0.70 U.S cents.  Support now comes in at 0.7100.   Tonight sees the release of Manufacturing data and New Home Sales. Durable Goods figures released Thursday and in particular Advance GDP on Friday are the pick of the data, in what is a short local week. 

EUR

The AUD maintains it's quiet range against the Euro, opening at 0.6338 this morning.  As we know, volatility has been constrained to a tight band in AUD/EUR for quite some time, nothing changed over the Easter break surprisingly!  This evening lacks any serious data to get our teeth into, Consumer Confidence is released this evening, with second-tier releases throughout the week.  Eurodollar respects its recent range, opening in the mid 1.12's in what has been one of the quietest times for volatility over the past three or four months. The ECB maintains it's dovish outlook, for now the Euro holds onto it's value against the majors.  Once again expect a quiet range in Euro pairs.   

GBP

AUD/GBP opens at 0.55, with limited movement over the Easter break.  P.M May continues to negotiate with Labour leader Corbyn, all to no effect presently.  It looks like the Brits are indeed going to have to vote at the European elections. Nigel Farage is making plenty of noise and intends to pick up more seats with his new Brexit party.  He's most certainly a threat to mainstream British politcs, especially the Labour party.  GBP data picks back up on Thursday, a quiet day for volatility expected ahead, local CPI data released tomorrow is key for AUD direction.  

NZD

AUD continues it's march against the NZD, making further gains over the Eater break and opening at 1.0682.  No major movement is expected over the coming sessions.  AUD looks to capitalise on it's new elevated position.  NZD/USD opens below 0.67 U.S Cents this morning. 

Today’s data

USD:

  • March New Home Sales, Richmond Fed Manufacturing Index

EUR:

April Consumer Confidence 

FX Corp