Australian Dollar:
There was a profound move away from riskier backed assets overnight which noticeably harmed the credentials of the Aussie Dollar. Moving to overnight lows of 1.0328 against its US Counterpart flaring tensions throughout Spain and Greece as well as disappointing New Home Sales figures out of the US all contributed to the move away from the higher yielding currency. Whilst weak commodity prices are also weighing on the Aussie there has been a significant wave of risk aversion which has now cast its shadow across markets, hence the appreciation of the Greenback against 13 of 16 major counterparties overnight. Meanwhile this morning interim support is likely to kick in around the 1.0320 mark as the Aussie opens lower at 1.0368.

We expect a range today of 1.0330 – 1.0400

New Zealand Dollar
Given the sea of red witnessed across global equity markets over the past 24 hours and it does come as some surprise to see the New Zealand Dollar trading in overall better shape this morning. Opening 30 basis points stronger at a rate of 0.8242 against its US Counterpart the New Zealand dollar has withstood not a only flight to safely triggered by signs of social unrest throughout Europe but also the release of a larger than expected trade deficit in August. In figures released yesterday exports fell 3.4 percent in August whilst the value of exports to Australia, New Zealand’s largest export destination fell a staggering 17 percent. Looking ahead for the remainder of the week and given the wave of pessimism which is now hanging over markets, global risk sentiment is likely to be greatly dictated by happenings throughout Europe, specifically Spain and Greece

We expect a range today of 0.8200 – 0.8280

Great British Pound:
The Great British has once again been dragged down by the woes of its European counterparts as riots throughout Spain and Greece bought to the forefront the challenges faced by each individual sovereign when imposing austerity commitments. Whilst several European Leaders have also called for additional limitations to be imposed when nations seek funding from the ESM’s bailout package, the net effect pointed markets lower. Struggling to keep its head above water the Sterling after touching lows of 1.6136 against its US Counterpart opens this morning weaker at 1.6160. Meanwhile on the cross rates the Sterling opens unchanged against the Aussie (1.55850 however significantly weaker against the Kiwi (1.9603)

We expect a range today of 1.5540 - 1.5620

Majors:
US Stocks fell for a fifth straight session yesterday as concerns mounted that Europe’s debt crisis is set to worsen. Keeping in mind we are only 2 weeks down the track following significant stimulus measures taken from a handful of Central Banks globally, including the US Federal Reserve and already we are seeing the momentum of the bears outpace the optimism of the bulls. Adding to the negative sentiment Spanish protestors marched in Madrid lobbying against austerity measures whilst demonstrations also took place in Athens. Whilst Spanish bond yields spiked above 6 percent, finance ministers in Germany, the Netherlands and Finland made calls for Spain to bear more of the costs associated with the recapitalization of their banks. Meanwhile on the currency front, all of this news only meant one thing for the Euro, a sell off. Falling to an overnight low of 1.2834 against its US Counterpart, the shared Unit opens this morning a third one cent weaker at 1.2870. Jumping briefly across to the US and the news didn’t get much better as figures showed the sale of new homes fell by 0.3 percent to 373 00 annual pace in August, well below the expected reading of 374 000. With all signs pointing towards a shedding of risk the Greenback opens stronger against 13 of its 16 major counterparties.

Data releases

AUD:
No data today

NZD: NBNZ Business Confidence

JPY:
No data today

GBP: Nationwide HPI m/m

EUR:
German unemployment change, M3 Money Supply, Italian 10-y bond auction

USD:
Core Durable good orders m/m, Unemployment Claims, Pending Home Sales m/m, Final GDP q/q