:: Australian Dollar: Early yesterday it appeared as though we were in for another quiet Asian session with the AUD/USD sitting contently within a 25 pip range for the majority of the day. The release of local data had no apparent impact, and despite an increase of 0.8% in the CB Leading Index the market was content in consolidating recent gains. The USD remained under pressure however and the Aussie soon found some momentum from bullish movement in precious metals markets and speculation of October cash rate hikes. Racing through what was expected to have been some form of resistance at 0.9700 the Australian Dollar entered off-shore trade just shy of 0.9730. Some mild profit-taking and mixed opinions over stimulus measures within the Fed saw a drop back below 97 cents, as the currency pair also awaits the US House of Representative's vote on the China trade sanctions bill. The passing of this bill is aimed at restricting low currency valuations in order to support exporters which is currently hurting U.S exports. Opening today around 0.9690 this morning's economic calendar brings data on local Building Approvals, Private Sector Credit and the RBA's Financial Stability review. Upside resistance has proven to be at 0.9730 and support lies at 0.9670.

- We expect a range today in the AUD/USD rate of 0.9650 to 0.9725

:: Great Britain Pound: Pound Sterling traded steadily in the right direction against the Greenback during yesterday's Asian session, moving from 1.5800 through to test key resistance levels at 1.5850 and reach highs near 1.5860 by the beginning of European trade. Resistance proved too much however and a sharp reversal sent the Pound back to 1.5810, with a mixed bag of local data failing to give the struggling currency any support. Quickly losing momentum Sterling needs new reason to push higher and investors will be watching the release of Consumer Confidence figures being released early this morning as well as the Nationwide house Price Index due early London hours. GBP/USD opens today back below 1.5800 currently trading between 1.5780/90. Also lower against the Australian dollar after falling below 1.6300 overnight we currently sit right on the 1.63 handle with early morning N.Z data releases taking the Pound is higher against the Kiwi this morning at 2.1470.

- We expect a range today in the GBP/AUD rate of 1.6250 to 1.6400

:: New Zealand Dollar: The New Zealand Dollar also spent yesterday's Asian session consolidating recent gains trading just below 74 cents. Capitalising on some momentary USD weakness, some orders managed to push the Kiwi briefly above 0.7400 with European trade seeing several unsuccessful attempts to push any higher. Proving too much in the end the NZD retreated quite rapidly back to test support levels around 0.7360 although attempting to recover these losses we begin today with the release of NZ Building Consents which have just been announced at a drop of 17.8%. An immediate drop was seen from 0.7370 to 0.7345 and we are currently trading at 0.7350. Today's session will also bring the release of National Bank of New Zealand's Business Confidence survey with this statistic holding quite a high degree of market influence. Against its antipodean counterpart, the Kiwi is also suffering with the Aussie forging new highs above 1.3150 which were only seen briefly back in April this year.

- We expect a range today in the NZD/USD rate of 0.7225 to 0.7325

:: Majors: EUR/USD saw little movement early on yesterday, trading between 1.3565 and 1.3595. An increase in French Consumer confidence helped push the single currency through 1.3600 for the first time since April this year and backed by some large orders it managed to stage a rally to new highs just below 1.3650. Continuing to weigh on the currency however is Portuguese and Irish debt worries, and this evening also brings the release of German unemployment figures and CPI estimates for EU member states. The Euro opens today trading at 1.3620. The Yen was one of the few currencies that made a move during Asia yesterday, gaining further ground against a suffering US Dollar and trading down to 83.62 as a strong September Tankan Index showed the highest reading since March 2003. Entering offshore trade just above 83.50 the Greenback attempted to recapture some of these losses however the pair have held solidly below 84.00. Entering Asia this morning at 83.75, investors await Japanese Preliminary Industrial Production and Retail Sales figures due out this morning.

:: Data Releases:

  • AUD: Aug Building Approvals, Aug Private Sector Credit & RBA Financial Stability Review
  • NZD: Sep NBNZ Business Confidence
  • USD: Q2 GDP Revision, Q2 PCE, Sep Chicago Purchasing Manager & Weekly jobless claims
  • GBP: Sep Nationwide House Prices
  • EUR: Sep CPI & German Sep Employment
  • JPY: Aug Retail Trade, Aug Industrial Production, Aug Housing Starts & Aug Construction Orders