Price Action Forecast for Pound Sterling Australian Dollar and Kiwi Dollar Exchange Rates

June 10, 2015 - Written by John Cameron

STORY LINK Price Action Forecast for Pound Sterling Australian Dollar and Kiwi Dollar Exchange Rates

Data from Down Under is set to take centre stage during the next 48hrs in the global currency markets. The Reserve Bank of New Zealand (RBNZ) leads the way later tonight with its latest monetary policy announcement and the set-up looks dangerous for investors holding New Zealand Dollar (currency:NZD)-denominated assets. The Kiwi central bank is expected by the majority of analysts to maintain its headline Overnight Cash Rate at its current level of 3.50%, but with the latest Fonterra GlobalDairyTrade auction results pointing to a renewed softening in the fetching price of New Zealand’s key exports, don’t be surprised if the RBNZ opts to trim the cost of borrowing once more. Such a move could send the Pound Sterling New Zealand Dollar exchange rate back up into the 2.2000s for the first time in several years.

Meanwhile, the early hours of tomorrow morning bring the release of the latest Australian labour market data and market-watchers are united in forecasting that these could be market moving for Aussie pairs. The Pound Australian Dollar exchange rate has spent much of the last week hovering either side of the two to one threshold and the keynote jobs numbers could decide whether the pair settles back in the low to mid 1.9000 – 1.95000 region or whether it pushes on to a fresh 5 ½ year high above two to one. The May Overall Unemployment figure is the one to watch – a print of 6.2% is once again anticipated, so a result of 6.0% or below will strongly favour the Australian Dollar, sending GBP AUD lower.

Looking ahead, data sets from the US during the final hours of the trading week are likely to determine price action for the US Dollar (currency:USD) as well as the risk-driven Commodity Dollars. A strong showing from tomorrow afternoon’s Advance Retail Sales numbers from the US will be required to cancel out last month’s disappointing edition, while Friday’s Michigan Confidence Survey, which has thrown out some unpredictable results in recent months, will also be closely-watched.

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