Australian Dollar
The recent rally in the Greenback seems to have lost steam yesterday, as markets consolidate upon what was quite a rapid gain. Eight week lows were seen of the Australian Dollar during local hours yesterday, falling below 1.0425 however strength in global equity markets pulled the local unit higher. Meeting resistance initially at 1.0500 the Aussie soon pushed through as approval by the IMF sent Greece one significant step closer to receiving its second bailout. Risk sentiment was finally awoken on the news and as higher yielding assets began to pick up, sentiment also began to finally absorb the recent pickup in the world’s largest economy, the United States. The Aussie begins trade for the final day this week at 1.0525.

We expect a range today of 1.0470 – 1.0560

New Zealand Dollar
Manufacturing in New Zealand expanded at its fastest pace since 2010, it was reported by Business NZ yesterday, the index rising to 57.7 from its previous reading of 50.8. Subsequently the Kiwi pushed towards 0.8100 on the news and a later pull back in the US Dollar helped the local unit higher again. An impressive move towards and through 82 cents was witnessed overnight and despite being unable to consolidate above this level as yet it opens this morning very close at 0.8195. Also moving higher against the Australian Dollar the cross rate trades this morning at 1.2840 (0.7788).

We expect a range today of 0.8150 – 0.8230

Great British Pound
The Great British Pound fell overnight against 11 of its 16 major trading partners after ratings agency Fitch affirmed the UK’s AAA credit rating but downgraded its outlook to negative, its actions based on a weak economic recovery and high debt levels. Sterling moved quickly back to intraday support at 1.5640 however a petering Greenback has limited losses in this pair. Despite Cable rallying above 1.5700 and holding here this morning, the antipodean cross rate have not fared so well. The aforementioned downgrade and a recent pick up in risky assets see trade against the Aussie at 1.4920 and the Kiwi at 1.9150.

We expect a range today of 1.4860 – 1.4980

Majors
The US Dollar has pulled back from 11 months high against the Japanese Yen as it struggled to maintain such a rapid gain. With Bank of Japan looking to continue monetary easing and the Federal Reserve starting to hold off on encouraging economic data, the gloss is on the Greenback although profit-taking on long positions has stunted its momentum slightly. After breaking 84.00 during yesterday’s Asian session the Yen pushed back and the pair moved lower to open this morning around 83.50, despite an increase in manufacturing in the Philadelphia region of the US as well as a drop in unemployment claims. The Euro has also been provided with a boost overnight after flirting with support at 1.3000 earlier in the day. The International Monetary Fund approved their portion of Greece’s second bailout, thus ticking one of the final boxes in approving the package and spurring a rally in the Euro. Pushing above 1.3100 it was unable to maintain the full extent of its gains yet we still open this morning around 1.3080. End of week event risk lies with the release of CPI, Industrial Production and Consumer Sentiment from the United States.

Data releases:

AUD: No data due for release

NZD: No data due for release

JPY: Monetary Policy Meeting Minutes

GBP: No data due for release

EUR: Trade Balance; Italian Trade Balance

USD: Prelim UoM Consumer Sentiment; Industrial Production m/m