Australian Dollar
The Australian dollar traded above the 1.03 level against its US Counterpart for much of yesterday’s local session, as investors stopped to take a breath in what has been a hectic week of movements. As the Australian dollar entered offshore trade however there was a clear shift away from the higher-yielding asset with US Stocks tumbling following disappointing service industry data as fundamentals of late continue to cloud the judgement of economists arguing that the US economic recovery is still on track. Falling to an overnight low of 1.0238 against the Greenback the Aussie Dollar appears destined to again re-establish itself between a medium term range of 1.02-1.04. Opening this morning a full 70 basis points lower the Australian dollar is currently trading at a rate of 1.0266 and with US non-farm payroll data due out this evening its likely price action will again be elevated.

We expect a range today of 1.0210 – 1.0320

New Zealand Dollar
The New Zealand dollar fell sharply yesterday, immediately losing a third of a cent against its US Counterpart in early morning trade. Triggering losses New Zealand’s unemployment rate unexpectedly rose to 6.7 percent in the first quarter, well above the forecasted reading of 6.3 percent. With the underlying number of those unemployed rising to 160 000 the labour force participation rate also increased by 0.6 percentage. With offshore equity markets and data releases out of both the US and Europe pointing in a negative direction the woes of the kiwi were further compounded as it traded to an overnight low 0.7987 against its US Counterpart. Losing more than a full US Cent in the past 24 hours there now appears a battle for the Kiwi to maintain levels above the 80 US Cents mark, at least in the short-term with the Nation’s currency currently buying 79.98 US Cents

We expect a range today of 0.7950 - 0.8050

Great British Pound
In reports released out of the UK overnight House Prices fell as did growth throughout Britain’s Services Sector. With Nationwide HPI and Services PMI both coming in well below expectation the Great British Pound gave up ground against its US Counterpart unable to hold onto support above the 1.62 level. Despite the Sterling losing just short of half a cent trading to overnight low of 1.6158 against the Greenback it still remains one of the best performing major currencies this year advancing 3.4 percent in the past 3 months. Whilst Sterling bids struggled to match the retreat made back into the US Currency by investors overnight, significant advances were witnessed on the Cross Rates as the Sterling opens remarkably stronger against both the Australian dollar (1.5757) and the New Zealand dollar (2.0215)

We expect a range today of 1.5710 – 1.5820

Majors:
Stocks, Commodities and a handful of major currencies all tumbled overnight amid disappointing US Service Industry Data which has only added to the pile of mixed signals recently delivered out of the world’s largest economy. With ISM Non-Manufacturing PMI coming in well below expectation at 53.5 against a forecasted reading of 55.5, investors remain nervy ahead of the all important US Unemployment figures due for release this evening. Meanwhile in Europe overnight in leaving interest rates on hold across the euro-area, ECB President Mario Draghi has left the door open for further stimulus if the economy continues to deteriorate. Whilst no discussion on lowering the current interest rate from 1 percent took place the Central Bank’s next move is to be greatly shaped by the new Inflationary and Growth forecasts due for release next month. Falling around a quarter of one US Cent overnight the Shared currency opens this morning in familiar territory at a rate of 1.3152. Looking ahead, the downside risks for the 17-Nation Euro remain prevalent given the increased tensions of late across financial markets and the uncertainty surrounding ongoing elections in both France and Greece.

Data releases

AUD:
RBA Monetary Policy Statement

NZD: No Data Today

JPY:
Bank Holiday

GBP: Halifax HPI m/m

EUR:
Final Services PMI, Retail Sales m/m

USD:
Non-farm employment Change, Unemployment Rate