Australian Dollar:

The Australian Dollar advanced yesterday managing to hold on its speculator gains from overnight Tuesday. Despite a key measure of Australian Consumer Confidence falling yesterday for a fourth straight month hitting a 27 month low, the Australian Dollar traded between a low of 1.0310 and high of 1.0380 against its US Counterpart during the domestic session.

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With such tight ranges offering a surprisingly buoyant day of trade for the Australian Dollar, as US and European Markets opened the Australian Currency was sold heavily reaching an eventual low of 1.0167 with the Dow Jones recording large losses amid renewed concerns that the European Sovereign Debt Crisis is worsening.

This morning sees the Australiana Dollar open noticeably lower currently trading at a rate of 1.0173 with the currencies short-term direction likely to be dictated by the all-important Unemployment Figure due for release at 1130am this morning.

We expect a range today of 1.0010 – 1.0280

New Zealand Dollar:

In what has been a tumultuous week for the New Zealand Dollar the Kiwi found some much needed support yesterday holding on to its significant gains made during the offshore session on Tuesday.

With Asian equities recording gains and Global Markets finally settling, the New Zealand Dollar tracked side-ways for the majority of the day trading between a tight 60 Basis Point Range against its US Counterpart.

This morning the New Zealand Dollar opens significantly lower currently buying 81.10 US Cents in proved to be another night of heavy losses for Global Equity Markets, all major stock indexes plunged as the constant threat of European Debt Fears continue to add a large degree of volatility to the markets to direction.

We expect a range today of 0.8050 – 0.8200

Great British Pound:

The Great British Pound opens noticeably lower against its US Counterpart this morning currently trading at a rate of 1.6131. Following on from a relatively subdued start the Sterling was heavily sold throughout the European Session as speculation continues to mount that the regions debt crisis is spreading to some of the regions much larger economies.

As the Sterling lost considerable ground Bank of England Governor Mervyn King did announce that should the outlook for domestic growth deteriorate further the Central Bank can expand stimulus as the persistently weak economic performance of its close neighbours providing considerable headwind to the UK recovery. Meanwhile the Sterling opens higher against the Australian Dollar at a rate of 1.5878.

We expect a range today of 1.5780 -1.5950

Majors:

Global Stocks slid yesterday losing approximately half of its gains witnessed overnight on Tuesday. In offshore trade yesterday The Dow Jones sunk 4.6 percent with the S&P 500 also finishing 4.4 percent lower.

With volatility remaining at an alarmingly high level throughout Global Equity Markets the US Dollar climbed versus 13 of its 16 major peers yesterday as it opens this morning slightly lower against the Japanese Yen at a rate of 76.85.

In the EURO Zone overnight Credit Agency Standard and Poor’s affirmed that the AAA Credit Rating for France would remain, however such news did little to stem fears that the regions sovereign debt crisis is worsening as the fiscal woes of the wider region continue spark mass levels of selling throughout global markets.

In overnight trade the EURO lost over 2 cents as it opens lower this morning at a rate of 1.4176 against its US Counterpart having lost significant ground from its 1.44 high seen earlier in Asian trade.

Data releases

AUD: Unemployment Rate, MI Inflation Expectation

NZD: REINZ HPI m/m, Business Manufacturing Index

JPY: Core Machinery Orders

GBP: CB Leading Index m/m, Nationwide Consumer Confidence

EUR: German WPI m/m, ECB Monthly Bulletin

USD: Trade Balance, Unemployment Claims