Australian Dollar
The Australian dollar did next to nothing intraday yesterday bouncing 20 basis points either side of its opening level of 1.0420 against its US Counterpart. Following a flat start, losses across global equity markets as well as tumbling commodity prices offered very little support to the higher yielding asset which fell to an overnight low of 1.0380. In what is shaping up as another very quite 24 hour period it appears investors are simply awaiting the release of some economic data to spur a reaction after a positive Consumer Confidence reading in the US did little to trigger demand. With the downward channel now well and truly intact sentiment remains bearish as the Australian dollar opens weaker this morning at 1.0390.

We expect a range today of 1.0350 – 1.0440

New Zealand Dollar
The New Zealand dollar declined against its US Counterpart yesterday after concerns grew that the recent stimulus measures taken by Central Banks will not be enough to spur growth. Channelling into concerns also that Europe is once again likely to engulf markets with their ongoing debt struggles the New Zealand dollar has fallen along with the drop in global risk sentiment. Running into support around the 82 US Cents mark the Kiwi opens this morning just above that level at 0.8212. On the outlook today some tier 2 data in the form of Trade Balance figures are likely to have only a minimal influence on the underlying currency.

We expect a range today of 0.8180 – 0.8250

Great British Pound:
An Industry report showed U.K mortgage approvals increased last month fuelling hope that the British economy is slowly improving. Offsetting the positive read, The Great British Pound has fallen against its US Counterpart in overnight trade, reaching lows of 1.6181 after starting the day at 1.6216. In an announcement made overnight the Bank of England said they may be able to borrow an initial 61 billion pounds under its plan to fend off contagion fears out of Europe through providing further credit to households and business. Despite its flat start to the week the Sterling has still managed to appreciate just short of 2 percent against the Greenback this year. Meanwhile this morning the Sterling opens stronger against both the Aussie (1.5570) and the Kiwi (1.9700).

We expect a range today of 1.5540 – 1.5600

Majors:
Markets have remained relatively subdued over the past 24 hours with the majority of investors choosing the more cautious route amongst a plethora of concern over global growth prospects. Despite the notable retreat in US Stocks some positive news was found following the release of the Conference Board’s sentiment index which increased to 70.3 in September from 61.3 in August, the highest level seen in seven months. In addition to this, US Home prices also climbed more than forecast rising by 1.2 percent from July 2011. Unlike the Greenback which climbed against a handful of currencies the Euro slipped against its US Counterpart falling to overnight lows of 1.2885 before opening weaker by a third of one cent this morning at 1.2902. Looking ahead this week the economic docket is looking increasingly thin with US New Home Sales the only release of any real importance expected out this evening. Keeping this mind currency direction is set to be largely dictated by debt crisis measures taken throughout Europe as pressures continue to mount on Spain to ask for a bailout sooner rather than later.

Data releases

AUD:
No data today

NZD: Trade Balance

JPY:
No data today

GBP: BOE Credit Conditions Survey

EUR:
German 10-y Bond Auction

USD:
New Home Sales