Australian Dollar
The Australian dollar returned to its winning ways yesterday bolstered by the actions of the Bank of Japan which saw the Central Bank add 10 trillion Yen to its 45 trillion-yen fund that buys assets including government debt. In what proved to be an overall positive move for global risk sentiment the Australian dollar peaked at a rate of 1.0496 against its US Counterpart as the higher yielding asset opens stronger this morning at 1.0480. Given a handful of strong US housing figures which also provided support for the local unit investor’s eyes will turn to Flash Manufacturing PMI figures which are due for release in China this morning with any reading below 50.0 indicating an industry contraction which will only add to concerns that economic growth throughout the world’s second largest economy is moving in the wrong direction.

We expect a range today of 1.0420 – 1.0500

New Zealand Dollar
The New Zealand dollar has remained range bound against its US Counterpart over the past 24 hours despite the fact the Kiwi has done very well to maintain levels close to a six month high in comparison to the Greenback. Trading between a range of (0.8255 – 0.8294) the riskier backed asset has generally struggled for direction since the rally witnessed late last week as a result of the US Federal Reserve unveiling fresh stimulus. With the Kiwi opening this morning flat, currently buying 82.68 US Cents second quarter GDP Figures are due for release shortly where it’s expected the economy will have grown at around 0.6 percent. Should such results surprise investors on the upside a move closer to the 83 US Cents level remains a possibility.

We expect a range today of 0.8230 – 0.8290

Great British Pound:
In minutes released from the Bank of England’s most recent meeting the nine member Monetary Policy Committee voted unanimously to maintain their bond-purchase target of 375 Billion pounds whilst also maintaining the benchmark rate at 0.5 percent. Despite the BOE which appears to be in mutual agreement, the minutes had an overall muted influence over the Sterling which has traded between a 24 hour range of (1.6184 – 1.6270) against its US Counterpart, opening slightly weaker this morning at 1.6218. In what is shaping up as a busy overnight session this evening, UK Retail Sales remain the pick of data releases with a reading below -0.3% likely to having a weakening influence on the Sterling. Meanwhile on the cross the Sterling is weaker against both the Aussie (1.5470) and the Kiwi (1.9607)

We expect a range today of 1.5430 – 1.5510

Majors:
Markets finished in positive territory overnight snapping two days of declines after US building permits, existing home sales and housing starts all came in above expectation. Providing further evidence that the housing market is slowly turning itself around, purchases of existing homes increased 7.8 percent, the most since May 2010 as limited supply, more affordable properties and fewer distressed properties being listed all added to the strong results. Continuing the recent trend of Central Bank intervention the Bank of Japan made headlines yesterday after they added 10 trillion Yen to their existing asset-purchase fund now worth 55 trillion. Going above and beyond what was expected the move had a relatively muted influence on the USD/JPY cross which after spiking as high as 79.207 in overnight trade has settled this morning to open at 78.332. Meanwhile jumping across to Europe a string of PMI releases due out this evening is likely to provide added volatility with the shared unit once again jumping above the critical 1.30 level against its US counterpart opening stronger this morning at 1.0348.

Data releases

AUD:
RBA Annual Report

NZD: GDP q/q

JPY:
All Industries Activity mm/, BOJ Monthly Outlook

GBP: Retail Sales m/m

EUR:
French Flash Manufacturing PMI, French Flash Services PMI, German Flash Manufacturing PMI, German Flash Services PMI

USD:
Unemployment Claims