Australian Dollar
Concern grew yesterday that Chinese growth is likely to slow over the coming quarter after data showed inbound shipments rose by an unflattering 6.3 percent in the month of June, almost half of the 11 percent increase forecasted. Increasing fears that the recent attempts to stimulate demand have fallen short of the mark the Australian dollar fell as a result yesterday trading as low as 1.0159 against its US Counterpart, having opened the day at 1.0206. Further denting the prospects of the higher yielding asset Australian business confidence fell to a 10-month in June a National Australia Bank Index showed. With global shares and commodities also taking a hit overnight its little surprise to see the Aussie dollar opening this weaker at 1.0186. Looking ahead today Consumer Sentiment figures remain the pick of local happenings ahead of the all important unemployment reading expected out tomorrow.

We expect a range today of 1.0140 – 1.0230

New Zealand Dollar
In another busy session across markets yesterday the New Zealand Dollar fell against its US Counterpart following news that China’s trade growth decelerated more sharply in June than expected. With a reliance on demand out of China to drive purchases of iron ore and other commodities locally the slowdown it’s likely to have direct impact on local producers. Whilst some relief was found out of Europe as Leaders agreed on bailout terms for Spain’s troubled banks the news was not enough to return the Kiwi back into positive territory and after trading between a 24 hour range of (0.7929 – 0.7987) against its US Counterpart the New Zealand dollar opens lower this morning currently buying 79.36 US Cents.

We expect a range today of 0.7900 – 0.7980

Great British Pound:
UK Stocks received a boost yesterday bolstered by a Manufacturing reading which unexpectedly rose in May. In a report released overnight UK Manufacturing surged the most in a year with Factory Output rising 1.2 percent from April. Despite the positive reading the Great British Pound was unable to add to its gains on Monday as the Sterling remains relatively stubborn around the 1.5500 mark against its US Counterpart. Currently swapping hands a rate of 1.5518, US Federal Reserve minutes due for release this evening are likely to dictate short-term direction for the Sterling. Meanwhile this morning the Sterling opens stronger against both the Australian dollar (1.5230) and the New Zealand (1.9534)

We expect a range today of 1.5190 – 1.5270

Majors:
US Stocks slide for a fourth straight day, giving the S&P 500 its longest losing streak since May. Driving global shares lower pessimism over a US Earnings session which is about to kick off, combined with weaker commodities across the board was enough to dampen the mood of investors. On a brighter note Euro-area finance ministers agreed overnight on the terms of a bailout for Spain’s troubled banks with Leaders expected to again return to Brussels on the 20th of July to finalise the agreement. Whilst such moves were seen as a positive, the 17 nation Euro fell against a handful of its major counterparties overnight as leaders continue to squabble over the timeframe in which a single European Banking supervisor can be established. Trading close to a two year low against its US Counterpart the Euro opens substantially weaker once again at a rate of 1.2251. Looking ahead this evening all eyes will be on US Fed Reserve Minutes following the Central Banks decision to add further stimulus as part of “Operation Twist” last month

Data releases

AUD:
RBA Deputy Gov Lowe Speaks, Westpac Consumer Sentiment, Home Loans m/m

NZD: No Data Today

JPY:
Tertiary Industry Activity m/m, CGPI y/y, Prelim Machine Tool Orders y/y

GBP: No Data Today

EUR:
Germaine Final CPI m/m, German 10-y Bond Auction

USD:
FOMC Meeting Minutes, 10-y Bond Auction, Trade Balance