Australian Dollar: Speculation on Monday the Bank of Japan intervened in currency markets sent the Aussie down to an intraday low of 0.9810 as the greenback strengthened against the Yen. The excitement did not last long and the climb towards parity resumed once more to see the unit enter the European session around 0.9880. In overnight trade, the Aussie moved between a high of 0.9910 down to a low of 9835. Today, the Reserve Bank of Australia meets to discuss monetary policy with around 20 per cent of market participants tipping a rise in rates today. The Aussie remains strong and opens at 0.9850.

We expect a range today of 0.9760 - 0.9890

New Zealand Dollar: Speculation on Monday the Bank of Japan intervened in currency markets sent the Kiwi down to an intraday low of 0.7635 as the greenback strengthened against the Yen. However, the unit remains strong and opens today at 0.7650 against its greenback counterpart. Offshore events will be the main focus this week particularly as events unfold in the United States where the Federal Reserve is expected to announce a second round of quantitative easing at its 2-day meeting which begins tonight. Meanwhile, the kiwi opens largely unchanged against the Australian Dollar at 0.7765.

We expect a range today of 0.7640 - 0.7700

Great British Pound: Pound Sterling (1.6020) closed in on a nine-month high versus the greenback overnight on speculation the Bank of England will refrain from further quantitative easing. A gauge of manufacturing based on a survey of companies rose to 54.9 in October, indicating expansion. The currency hit an overnight high of 1.6089, just shy of the nine-month peak of 1.6107 reached a fortnight ago. Meanwhile, the pound opens marginally lower against both the Australian Dollar (1.6250) and the New Zealand Dollar (2.0925).

We expect a range today of 1.6230 - 1.6300

Majors: The U.S. Dollar opens marginally higher against the Japanese Yen (80.55) and the Euro (1.3880) after stronger-than-expected manufacturing data, but was mixed against several other major currencies. The Institute for Supply Management's factory index rose at its fastest pace in five months to 56.9 in October from 54.4 the previous month. The data had some traders squaring positions ahead of the U.S. Federal Reserve's 2-day meeting which commences on Tuesday. The greenback recovered from fresh 15-year lows against the Yen (80.23) on speculation the Bank of Japan had again intervened in currency markets.

Data releases

AUD: RBA rate decision

NZD: Average Hourly earnings, Q3

JPY: Bank of Japan minutes

GBP: PMI Construction, Oct

EUR: Euro zone PMI Manufacturing, Oct

USD: No data today

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