Australian Dollar
The Australian Dollar fell from a 12-week high yesterday with investors selling the Nation’s currency consistently for the majority of the overnight session. Driving the Aussie to an overnight low of 1.0427 against its US Counterpart, talks between European Finance Ministers and Greek Policy Makers hit a stalemate yesterday with investors seemingly unwilling to provide any further public money to the highly in-debited Nation. During a session in which global risk sentiment took a battering the Australian Dollar has done well to recover some its earlier losses opening this morning around half a cent lower currently swapping hands a rate of 1.0478. Looking ahead today all eyes will be on local CPI figures due for release at 11:30 am this morning, with any further cooling off in inflation likely to fuel speculation of a RBA Rate Cut next month.

We expect a range today of 1.0420 - 1.0520

New Zealand Dollar
The New Zealand Dollar has again proved to be very resilient in overnight trade as it opens relatively unchanged this morning at a rate of 0.8104 against its US Counterpart. In what was a very choppy day of trading for the Kiwi, concerns over a very frail Greek Debt Deal saw the Nation’s currency lose half a cent earlier in the day, dropping as low as 0.8054. With European Officials essentially rejecting Greece’s debt deal swap, very real concerns remain surrounding a forthcoming default. Despite the global equities also losing around half a percent the New Zealand Dollar has again found some solid support above the 80 US Cents Level

We expect a range today of 0.8050 – 0.8150

Great British Pound
UK’s Budget Balance narrowed more than forecast in a report released yesterday providing more evidence that the government’s attempts of increased fiscal control are starting to gain some solid traction. Whilst tackling a budget deficit is being made even harder by flagging growth, addressing the deficit has now been made a priority by Policy Makers. In an overall positive session for the Sterling, The Great British Pound gained ground against its US Counterpart rallying to overnight high of 1.5615, nearing some of the highest levels we’ve seen this year. In data releases due out this evening Minutes from the Bank of England’s most recent meeting are likely to provide some insight into the Central Banks short-term Monetary Stance. Meanwhile this morning the Sterling opens stronger against the Aussie (1.4882) and the Kiwi (1.9241)

We expect a range today of 1.4810 – 1.4950

Majors
Global markets finished lower in overnight trade as investors digested the IMF’s decision to cut its global growth forecast for the year ahead from 4 percent to 3.3 precent whilst also warning of a serious downturn in the event that the 17-Nation Euro-Zone was unable to successfully tackle there ongoing fiscal problems. Further adding to the negative new-flows out of Europe, talks over Greek-Debt restructuring reached a Stalemate with Private bondholders refusing to agree on a proposed debt swap deal. Despite the relatively bearish fundamentals, market sentiment has remained relatively positive with the EURO managing to hold on to its recent gains. After trading between a 24 hour range of (1.2952 -1.3062) it opens at a very similar level to where we left it yesterday at a rate of 1.3022. Meanwhile in the US, the Greenback has also benefitted from a slight flight to safety recently as it continues to hover just short of the 78 level against the Japanese Yen. In what is shaping up as a very eventful week for the Greenback and broader US Economy the Fed Reserve is due to meet this evening ahead of the release of official growth figures due out Friday

Data releases

AUD:
CPI m/m

NZD: Credit Card Spending y/y

JPY:
BOJ Monthly Report, Trade Balance

GBP: MPC Meeting Minutes, Prelim GDP q/q, Index of Services 3m/3,, CBI Industrial Order Expectation

EUR:
German Ifo Business Climate, Italian Retail Sales m/m

USD:
OFHEO HPI M/m, FOMC Statement, Federal Funds Rate, FOMC Press Conference