Australian Dollar
The Australian dollar opens around half a cent lower against its US Counterpart this morning following on from what has been an eventful 24 hours. In minutes released from the Reserve Banks February meeting, Governor Glen Stevens stated that improved global sentiment combined with the fact conditions out of Europe have stabilised somewhat as justification for keeping the official cash rate unchanged at 4.25 per cent. With very little hint of future rate movements, medium-term interest rate decisions are likely to be dictated by global growth prospects ahead of domestic developments. As the currency entered the offshore session further downside in the Australian Dollar was apparent as it traded to an overnight low of 1.0654, having failed to improve at all on its opening rate of 1.0752 seen earlier. Currently swapping hands at a rate of 1.0670, the Australian Dollar appears unlikely to re-capture the 1.08 handle anytime soon.

We expect a range today of 1.0610 – 1.0720

New Zealand Dollar
The New Zealand Dollar traded lower for much of yesterday in what was a very choppy day of trading for the kiwi. Having initially opened the day at a rate of 0.8391 against its US Counterpart news that Greece had survived its moment of truth and finally signed off on second Bailout package did little to support New Zealand’s Currency. With the expectation that such agreements would be met already well and truly priced into the market, investors took the opportunity to sell the higher-yielding asset which saw the kiwi reach a 24 hour low of 0.8330. Opening this morning 60 basis points lower, currently buying 83.36 US Cents, investors remain cautious given doubts still remain as to whether the proposed bailout will be enough for Greece to keep its head above water.

We expect a range today of 0.8290 - 0.8380

Great British Pound
In Public Sector Borrowing figures released yesterday Britain’s budget surplus came in well above expectation, recording the largest monthly surplus in four years. Pressure has subsequently increased on Chancellor of the Exchequer George Osborne to provide some further stimulus to the flagging economy when a new budget is expected to be outlined next month. Despite the positive result locally markets attention overnight was largely dictated by the news European Finance ministers approved a 130 billion-euro bailout package for Greece with the underlying sentiment towards such deals still leaving investors unconvinced. Following a day in which the Sterling was consistently sold across the board the Great British Pound opens this morning noticeably lower against its US Counterpart currently swapping hands at a rate of 1.5779.

We expect a range today of 1.4720 – 1.4850

Majors
Seven months of negotiations finally came to an end in Brussels overnight where European Finance ministers approved a 130 billion-euro bailout package for Greece. The deal included a 53.5 percent write down for private bondholders as well as tapping into ECB profits to help provide relief. Despite the stalemate finally ending European Stocks fell from a six month high overnight as speculation mounted that the bailout will not be sufficient to solve the nation’s debt crisis. With Greece facing a fresh election in April, public unrest and administrative incapability’s will only further add to the argument that the current solution remains a mere bandaid which may fall off at any time. Despite the bears which have surfaced, the short-term viability of Greece has been assured. On the currency front the 17-Nation Euro initially rallied following the announcement trading to an overnight high of 1.3292 against its US Counterpart, unable to sustain those gains however, opening this morning a very similar level to where we left it yesterday at a rate of 1.3246. Meanwhile US Markets returned from a public holiday yesterday with the Greenback benefitting overnight from a minor flight to safety which saw the Dollar appreciate against the Japanese Yen for fourth straight day opening stronger at a rate of 79.682

Data releases

AUD:
CB Leading Index m/m, MI Leading Index m/m, Wage Price Index q/q

NZD: Credit Card Spending y/y

JPY:
No Data Today

GBP: MPC Meeting Minutes

EUR:
French Flash Manufacturing PMI, French Flash Services PMI, German Flash Manufacturing PMI, German Flash Services PMI, Industrial New Orders m/m,

USD:
Existing Home Sales