Australian Dollar
The minutes for the May meeting of the Reserve Bank of Australia indicated after the surprise 0.5% cut issued on Tuesday, the central bank are now entering a ‘wait and see’ period to assess what impact the cut has on the domestic economy. With the likelihood of another southward move lessening in the short-term, the Aussie Dollar gained after the release on Friday, touching session highs near 1.0275. Unable to maintain the move higher the local unit drifted back to support at 1.0250 as markets traded tentatively ahead of the critical monthly US non-farm payrolls; an event which carries a high impact on general market sentiment. When faced with disappointing employment growth, a flock back to safety left the Aussie unprotected and by close of markets it was trading at 1.0180. Opening levels this morning have taken another hit as existing French president Nicholas Sarkozy loses out to rival Francois Hollande, the Aussie trading at 1.0155 ahead of building approvals and retail sales figures today.

We expect a range today of 1.0090 – 1.0190

New Zealand Dollar
In a typical risk-off Friday, the New Zealand dollar settled around the 80 cent handle during its local session, as market participants contemplated the effect upcoming US unemployment figures and European elections may have on overall global economic sentiment. Establishing session highs near 0.8015 and lows approaching 0.7995 it was undeniably a test of the lower end once payroll figures were announced during the North American session. An increase of 115,000 jobs is agreed by many to be in line with sluggish economic growth and riskier assets, such as the Kiwi, were shunned by investors. French and Greek parliamentary elections are also bringing European concerns back to the forefront and thus the NZD/USD trades lower this morning at 0.7930. AUD/NZD has made little ground either way in the current risk-off environment and sits at 1.2800 (0.7813).

We expect a range today of 0.7890 – 0.7980

Great British Pound
Sterling opens lower this week against the Greenback as sluggish job creation in the world’s largest economy weighs on investor sentiment. The news caused Cable to drop 40 points to sit around 1.6150 by close of markets on Friday, after earlier also feeling pressure due to a 2.4% decrease in local house prices during the month of April. Opening this morning, news of a presidential change in France has re-kindled European concerns and Sterling touched three and a half year highs against the Euro near 0.8060. GBP/USD opened lower on risk however has pared losses back to 1.6150; GBP/AUD rallies to 1.5900 as we write and GBP/NZD sits just short of 2.0350 with the May Day holiday likely to keep Sterling trading in line with market sentiment.

We expect a range today of 1.5820 – 1.5990

Majors
A weaker than expected non-farm payroll figure on Friday sent markets into a tailspin with investors flocking back to the relative safety of the Greenback, Yen and US Treasury bonds. Reporting the addition of 115,000 jobs during the month of April, many are saying the increase is in line with sluggish economic growth of the world''s largest economy and the US Dollar rallied as a result. An already troubled Euro, faced with the uncertainty of both French and Greek parliamentary elections over the weekend, fell from earlier ranges around 1.3150 to closing lows of 1.3080. A bank holiday in Japan kept USD/JPY trading in a conservative range around 80.15 earlier in the day however the disappointment over the employment situation in the United States pushed the pair towards closing levels near 79.80. Gapping 70 points on open this morning the Euro faces an uncertain week as news hits the wires of Nicholas Sarkozy’s defeat in the French presidential elections. Currently trading at 1.3020, 1.3000 remains a critical support level, a break through this would then potentially challenge the next support at 1.2925.

Data releases:

AUD: Building Approvals m/m; Retail Sales m/m; ANZ Job Advertisements; NAB Business Confidence

NZD: No data due for release

JPY: Monetary Policy Meeting Minutes

GBP: No data due for release

EUR: Sentix Investor Confidence; German Factory Orders m/m

USD: Consumer Credit m/m