Australian Dollar:
Pushing the Australian dollar higher early yesterday figures showed Retail Sales for the month of January unexpectedly climbed by 0.9 percent. Surpassing even the most bullish forecasts, the positive reading follows three consecutive months of falls painting a prettier picture for the local economy which has recorded a consistent increase in consumer sentiment. In other big news yesterday the RBA surprised very few by keeping interest rates on hold at 3 percent. Reiterating that it has room to cut further if needed, overall the decision had only a minimal impact on the domestic currency. Reaching intraday highs of 1.0261 against its US Counterpart, the gains were consolidated as the higher yielding asset entered the offshore session as we open this morning notably stronger at a rate of 1.0245. On the outlook today GDP figures due to be released this morning will be key for short-direction with any reading above 0.6% likely to have a positive influence.

We expect a range today of 1.0210 – 1.0270

New Zealand Dollar
The New Zealand dollar has headed north for much of the past 24 hours bolstered by a rally across global equity markets amidst improved signs that the US recovery story is gaining traction. Whilst non-manufacturing PMI in the US beat expectation the New Zealand dollar received a further boost following comments made in China by outgoing Premier Wen Jiabao. Reiterating China’s growth rate at 7.5 percent the government also pledged a 10 percent jump in fiscal spending, effectively increasing their budget deficit by 50 percent. Moving from an opening level of 0.8255 against its US Counterpart the New Zealand dollar reached a high of 0.8331 before settling to where we are this morning, comfortably higher at 0.8314

We expect a range today of 0.8280 – 0.8340

Great British Pound:
Providing a glimmer of that hope that Britain’s economy may be able to narrowly avoid a triple dip recession, in figures released overnight Britain’s services sector grew at a stronger than expected pace in February, its biggest rise in five months. Whist European stocks advanced to a four and a half year high the Great British Pound has once again failed to be inspired ahead of the BOE’s Policy meeting tomorrow evening. With Policy makers remaining split on the need to expand quantitative easing in February, further stimulus should provide a short-term boost for Sterling. Opening overall unchanged against the Greenback this morning at 1.5114 the Sterling is weaker against both the Aussie 1.4750 and the Kiwi 1.8175.

We expect a range today of 1.4720 – 1.4780

Majors:
It was a “risk on” session for global markets overnight with a string of positive results spurring demand for assets deemed riskier in nature. Sparking a 1 percent jump in the S&P 500 outgoing Chinese Premier Wen Jiabao pledged ongoing support for the worlds’ second largest economy by announcing plans for a 10 percent increase in government spending in 2013 whilst confirming growth targets at an annual rate of 7.5 percent. Continuing the trend of ongoing stimulus, markets have remained in a bullish mood following comments overnight Monday by Fed Vice-Chairman Janet Yellen that the Central Bank should press on with their bond purchases which are worth a staggering 85 billion per month. Outside of the stimulus bumble economic indicators in the US impressed with ISM non-manufacturing PMI comfortably beating forecast with a reading a 56.0. With retail sales across Europe climbing by 1.2 percent in January, Services PMI for the 17 nation pact also improved, contracting by a smaller than expected amount. Despite the positive sentiment prospects for the euro failed to improve with very little upside momentum limiting the rally. Gaining a mere 20 basis points the shared unit opens stronger this morning at a rate of 1.3040.

Data releases

AUD:
GDP q/q

NZD: No data today

JPY:
No data today

GBP: Halifax HPI m/m, BOE Gov King Speaks

EUR:
Revised GDP q/q

USD:
ADP Non-Farm Employment Change, Factory Orders m/m