Australian Dollar
Whilst private sector credit as well as private capital expenditure figures came in well above expectation, building approvals fell for the month of April by a seasonally adjusted figure of 8.7 percent. Driving the Australian dollar lower during domestic trade yesterday, local equities had a shaky start to the day triggering a move away from the riskier back asset as investors remained cautious ahead of mounting concerns out of Europe. Having breached psychological support of 97 US Cents the Aussie Dollar traded as low as 0.9672 against its US Counterpart with 0.9650 now being the next critical level. As US and European markets entered the frame the majority of the early losses were recuperated which sees the Australian dollar currently swapping hands at a rate of 0.9727. Closing out the week, all eyes will be on US Non-Farm payroll figures which are due for release this evening with a disappointing figure likely to create further downside pressure for the Australian currency.

We expect a range today of 0.9650 – 0.9780

New Zealand Dollar
The New Zealand dollar held firm yesterday as Europe’s sovereign debt concerns continued to hang over markets. With investors steering well clear of riskier backed assets the New Zealand dollar had a very brief encounter below 75 US Cents overnight trading to an overnight low of 0.7499 against its US Counterpart. In what is shaping as a very cautious market place pressures continue to mount on economic leaders throughout Europe to fast-track measures to limit contagion as a lack of promptness and unity continues to hurt global markets. With investors seemingly taking a wait and see approach ahead of US non-farm payroll figures which are due for release this evening further key risk events lie ahead today given the scheduled release of Chinese manufacturing figures. Meanwhile this morning in an overall muted session of trading the Kiwi opens at a very similar level to where we left it yesterday as it currently buys 75.26 US Cents

We expect a range today of 0.7480 – 0.7570

Great British Pound
UK House Prices rose in May for first time in three months as a pull back in supply helped spur values. Whilst home prices rallied, the FTSE 100 Index recorded only minor gains as equities struggled to maintain any type of strength amongst the ongoing confusion in the Euro-Zone. Drifting lower for much of the past 24 hours the Great British Pound traded down to an overnight low of 1.5360 against its US Counterpart, opening this morning around 70 basis point lower than yesterday at a rate of 1.5402. In what is shaping up as an eventful conclusion to the week, the road ahead is likely to remain a rocky one with Manufacturing PMI due out of the UK this evening as well as Unemployment figures out of the US. Meanwhile this morning the Sterling has managed to lose some noticeable ground against both the Aussie (1.5896) and Kiwi (2.0456) which both open lower.

We expect a range today of 1.5840 – 1.5950

Majors:
Global stocks continued their slide overnight with weak economic readings out of the US combined with ongoing fears out of Europe taking their toll on markets. Facing fresh criticism from Italian PM Mario Monti overnight, German Chancellor Angela Merkel has become increasingly isolated as she remains firm on her stance that direct euro-aid for struggling banks is not the best move forward. Given proposals by the European Commission to fast-track a timetable for euro-bonds, it’s difficult to find a time where market direction has been so greatly dictated by the action’s of politicians. Trading within a slightly tighter range to what we’ve become accustomed the Euro has managed to recover well from early losses opening this morning relatively unchanged at rate of 1.2359. Jumping across to the US briefly and the news doesn’t get a whole lot better, ahead of the all important US non-farm payrolls which are due for release this evening, in further signs of labour market weakness weekly unemployment claims jumped to a one month high whilst private employment climbed by a measly 133 000 in May. Meanwhile this morning the Greenback has experienced a slight pull back as it opens weaker against the Japanese Yen at a rate of 78.349.

Data releases

AUD:
Commodity Prices y/y, AIG Manufacturing Index

NZD: Overseas Trade Index q/q

JPY:
No Data Today

GBP: Manufacturing PMI

EUR:
Italian Manufacturing PMI, Final Manufacturing PMI, Unemployment Rate

USD:
Unemployment Rate, Non-Farm Employment Change, Personal Spending m/m, ISM Manufacturing PMI