Australian Dollar
The Australian Dollar has managed to hold on to the majority of its gains in overnight trade following the Shock decision by the RBA to keep the official cash rate on hold on Tuesday. After starting the day around the 1.08 handle against its US Counterpart investors snapped up the higher yielding asset driving it to a late afternoon high of 1.0843, the highest level seen in over six months. As the Australian dollar entered the offshore session however the earlier gains proved to be short-lived as the market nervously awaits the outcome of Greek Debt negotiations. In the absence of any local data today inflationary figures expected out of China has the potential to drive short-term direction as the Aussie opens at a very similar level to where we saw it yesterday currently swapping hands a rate of 1.0795.

We expect a range today of 1.0750 – 1.0860

New Zealand Dollar
The New Zealand Dollar rallied for much of yesterday with strong demand for assets deemed riskier in nature seeing the Kiwi break temporarily through the psychological 84 US Cents handle. Whilst the move was relatively short-lived global risk sentiment has certainly favoured the New Zealand Dollar for the early parts of this week despite the ongoing Stalemate in Greece as Policy makers struggle to come to a consensus in agreeing to the terms of a potential bailout. In overnight happenings global equities finished flat which saw the New Zealand Dollar pull back from earlier highs opening this morning at a rate of 0.8354 against its US Counterpart. Looking ahead today, Unemployment figures are expected out shortly with any improved reading likely to provide further support for the Nations currency.

We expect a range today of 0.8320 – 0.8400

Great British Pound
UK Stocks declined for a third consecutive day yesterday amid concerns Greece’s political leaders are no closer to agreeing to the terms of a second bailout. With very little in the form of local data to provide any real support for the Sterling, The Great British Pound has been sold off against its US Counterpart for much of the past 24 hours. After trading to an earlier high of 1.5928, this morning sees the Sterling open around 60 basis points lower than the same time yesterday at a rate of 1.5826. The Bank of England are due to meet this evening, with further downside risk remaining a distinct possibility for the Sterling should any hints of further asset purchases be rumoured. Meanwhile this morning the woes of the Sterling continue opening lower against both the Aussie (1.4627) and the Kiwi (1.8935)

We expect range today of 1.4600 – 1.4750

Majors
In what was much of the same for markets overnight, it was again concerns out of Greece which had investors holding their breath hoping for some type of resolution. Global Stocks and US Treasury’s almost stood still overnight which resulted in an overall subdued session around the Globe. Given the Greek Cloud which has formed over markets, the 17-nation EURO remained directionless in overnight trade, ranging between (1.3220 – 1.3287) against its US Counterpart. Opening this morning at a rate of 1.3263, markets are set to heat up this evening where the ECB is due to meet to discuss their current Monetary Policy Stance. Whilst it’s wildly anticipated that the Central Bank will keep interest rates on hold at 1 percent any further break-down in talks between Greek PM Lucas Papademos and Coalition Leaders could potentially derail the current strength of the 17-Nation currency with strong resistance already being established around the 1.3330 handle. Meanwhile this morning in what was uneventful session in the US, the Greenback opens stronger against the Japanese Yen currently trading at a rate of 77.023.

Data releases

AUD:
No Data Today

NZD: Unemployment Rate

JPY:
Core Machinery Orders m/m, M2 Money Stock y/y

GBP: Manufacturing Production m/m, Trade Balance, Industrial Production m/m, Official Bank Rate, MPC Rate Statement

EUR:
Minimum Bid Rate, ECB Press Conference

USD:
Unemployment Claims