Australian Dollar
Following a relatively flat start to the day the Australian Dollar came to life late in the afternoon session reaching an eventual high of 1.0377 against its US Counterpart. Driving the positive risk flows into the Australian Dollar Chinese Inflationary Data released came in just above forecast however speculation has continued to mount that the Chinese Government will at some stage in the medium-term seek to ease Policy to help spur growth. Giving back its earlier gains against the Greenback as it entered the offshore session, weak US data in the form of Unemployment claims and Retail Sales managed to erode some of the earlier optimism as the Australian Dollar managed to do the full circle opening flat this morning, around 20 basis points higher at a rate of 1.0331.

We expect a range today of 1.0280 – 1.0380

New Zealand Dollar
The New Zealand Dollar fell against its US Counterpart yesterday following a mixed day of trading for the Kiwi. Having started the day at a rate of 0.7967, the kiwi traded sideways for the majority of Asia’s session with local equities and commodity trades offering very little support for the Nations Currency. Whilst the kiwi did manage some upside movement reaching an overnight high of 0.7980 against its US Counterpart, the brief rally proved to be short lived following the release of US Retail Sales which disappointed the market with a reading of 0.1 percent against a forecasted estimate of 0.3. Meanwhile this morning we see the New Zealand Dollar open slightly weaker currently buying 79.40 US Cents and despite debt fears being slightly reduced across the Euro-Zone overnight the Kiwi has continued to run into stiff resistance around the 80 US Cents Level.

We expect a range today of 0.7900 – 0.7990

Great British Pound
In line with the majority of economists forecast, the Bank of England kept its benchmark cash rate unchanged overnight at 0.5 percent, as well keeping its target level of bond purchases at 275 billion pounds. In what was a very busy session of data releases out of the UK, Industrial Production and Manufacturing Figures both disappointed on the downside, failing to provide any real support for the Sterling which has remained under consistent selling pressure of late. After trading between a 24 hour range of (1.5278-1.5367) against its US Counterpart the Sterling did receive some support from its European neighbours with successful bond auctions out of Italy and Spain helping to temporary sideline ongoing debt-fears for the broader region. Meanwhile this morning with domestic conditions showing only minor signs of improvement the Sterling opens at a very similar level against the Greenback at a rate of 1.5338, however weaker against a stronger Aussie at a rate of 1.4843.

We expect a range today of 1.4790 1.4900

Majors
As expected the European Central Bank left the official Cash Rate unchanged overnight at 1 percent. When pressed on the likelihood of future interest rate cuts ECB President Mario Draghi remained non-committal, stating the ECB remained “ready to act” and that their monetary stance will remain accommodative. In positive signs for the markets overnight Draghi was also keen to point out that there have been some tentative signs of stabilization throughout the region over the course of the previous month. Following the announcement the EURO immediately rallied and after trading as low as 1.2698 against its US Counterpart, rebounded strongly reaching an eventual high of 1.2844. In further news flows out of the EURO- Zone Spanish and Italian borrowing costs declined in a well received bond auction adding further evidence to the argument that debt fears have subsided at least for the time being. Dampening the positive sentiment overnight, US Economic releases in the form of weekly unemployment claims and Retail Sales both came in well below expectation which did have a softening impact on global equities. Meanwhile this morning the Greenback opens weaker against the Japanese Yen at a rate of 76.748.

Data releases

AUD:
No Data Today

NZD: No Data Today

JPY:
M2 Money Stock y/y

GBP: PPI Input m/m, PPI Output m/,

EUR:
Trade Balance

USD:
Trade Balance, Import Prices m/m, Prelim UoM Consumer Sentiment, Prelim Inflation Expectations, FOMC Member Dudley Speaks