Currency Update - Tuesday 23rd July 2019

AUD

AUD/USD reached a high of 0.7155 yesterday and opens a shade lower, USD marginally stronger overnight.  Holiday's in Europe are making for tight currency ranges and low volumes at present.  Markets are waiting to hear from the ECB Thursday evening before placing big positions in the market.  Equities were bid in the overnight session, oil jumped 1% on account of Iranian tensions, commodities were softer.  The RBA's Kent speaks this morning on a topic that shouldn't garner too much interest.  Technicals remain the same, 0.70 providing support, 0.71 resistance. 

USD

News was limited from the U.S overnight.  News services reported that the White House and Congress are close to agreeing a two year debt limit plan.  Meanwhile Trump continued to lobby the Fed on Twitter, calling for interest rate cuts.  Stocks moved around 0.5% higher, oil fell 1%.  The USD was stronger against the majors, the Pound especially weaker as a number of Ministers resigned at the prospect of Boris Johnson becoming the new conservative leader.  Existing Home Sales and Manufacturing data are released later this evening.  Friday's GDP is the most important U.S data release this week. 

EUR

Summer Holiday's capped volumes and volatility overnight, Eurodollar opening marginally lower, the USD index stronger.  AUD/EUR opens flat but towards the top of its recent range.  With no data to report focus will remain on global geo-political concerns and the ECB's up and coming monetary policy meeting Thursday evening.  Draghi retires in three months, will be give markets one more gift before he leaves? EU Consumer Confidence is released later this evening. 

GBP

Cabinet resignations saw the offered tone continue for the Pound ahead of expectations that Boris will become the new Conservative leader.  The FTSE closed up 0.5%, AUD/GBP remains at 0.5636.  CBI Industrial Order Expectations are released this evening, political developments are likely to keep Sterling under pressure.  

NZD

The Kiwi fell to 0.6755 as the USD crept higher overnight.  Currency ranges were tight in the past 24 hours as this week remains a quiet one for economic data.  AUD/NZD fell to touch lows of 1.04.  

Today’s data

AUD

  • RBA's Kent Speaks

EUR

  • July Consumer Confidence

USD:

Home Sales, Manufacturing Index

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