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USDCHF

All Quiet On The Front Ahead Of Decisions

With dollar data absent on the day, momentum from the beginning of the week continued to dissipate throughout the FX markets as speculation continued to price in a higher probability of continued rate hikes by the Federal Reserve.  Exacerbating the current sentiment was continued hawkish bias late yesterday with three key members of the Federal Reserve reiterating the possible need for further tightening given the inflationary outlook.  Comparatively, Euro zone data couldnt help the Swissie against theUS single currency even as factory orders in the areas largest economy ripped higher to post highs not seen since March of 2005.  Nonetheless, ranges were tight on the day ahead of the European Central Bank announcement.  Anticipated to raise benchmark rates by 25 basis points, speculation is surrounding the possibility of a 50 basis point rate hike or a slightly more hawkish tone in the ECB presidents subsequent comments.  Surely, the tomorrows press release will be heavily considered for the upcoming Swiss National Bank decision as speculation as mounted a possible 50 basis point charge.

Rumormill

Heading into the Asian session, ranges continue to remain tight as traders remain on the wayside ahead of the highly awaited decision and following press conference.  As a result, stop orders are the only congregation rumored at the 1.2135 level, slightly below the current spot.

NZDUSD

Kiwi Trades Pared Back On Dollar Push

Kiwi ranges were tight on the day with no significant releases to move the spot otherwise.  Opening on a tight range, a rumored European player tripped stops on a decline in the AUDNZD boosting near term demand for the major. However, the cross fought back, sparking bearish bias as the first quarter gross domestic product figure fared better than expected.  The report was coupled with current dollar momentum in bringing the major to a negative standstill at the New York close.  Economic data is zilch for the Kiwi economy, with the spot likely to react to cross boarder surveys.  Expected for release tomorrow will be the unemployment rate and change figures for the Australian economy.  Subsequently, dollar sentiment looks likely to take over in the North American open.

Rumormill

Buy interest is noted at 0.6255 with further, but thinner bid interest surrounding the 0.6200 figure.  However, comparative to bidders, offers look to be consistently taken at the current spot on the days negative bias.

AUDNZD

Cross Pair Negates Aussie Report

Australian bidding was present, set aside from the overwhelming negative bias on the cross.  Gold prices and commodities took a hit in the morning, dragging along the Aussie major despite better than expected gross domestic product figures.  Rising more than expected, the report sparked further speculation on continued tightening bias as inflationary expectations remain high on the growth figure.  As a result, tonights employment figures look to lend little bias in the overnight with dollar sentiment still remaining relatively strong in the risk averse environment.  Separately, cross stabilization looks to be keeping the AUD major under pressure as dollar bids are sure to be taken given the weeks hawkish reversal by US officials.

Rumormill

Bidding remains tipped at 0.7390, propping up the current spot heading into the Asian session with stops closely monitored at 0.7375.  However, selling pressure looks to come in heavy form at the 0.7400 figure and above to 0.7430.