Australian Dollar
The Australian Dollar remained well supported above the 1.05 handle against its US Counterpart on Friday with local equities closing flat in what was an overall very subdued day of trade. After opening the day at a rate of 1.0522 investors interest in the higher yielding asset climbed as European and US Markets opened. With the S&P 500 closing out its best week in 3 months, optimism surrounding global growth prospects outweighed a string of disappointing data releases out of the US as the Australian dollar managed to reach an overnight high of 1.0596. In what is shaping up as another quiet session for the Australian Dollar, this morning sees the local unit open at a rate of 1.0584 having been strongly tested around 1.0450 handle early last week.

We expect a range today of 1.0530 – 1.0630

New Zealand Dollar
The New Zealand Dollar rose against the US Currency for much of Friday after a rally in global equity markets spurred demand for the higher-yielding asset. After opening the day at a rate of 0.8188 against its US Counterpart, it was a steady day of accumulation for the Kiwi as it reached an eventual high of 0.8257 late in offshore trade. With markets well and truly turning the risk switch on late last week the Kiwi has managed to gain ground against the Greenback with confidence growing that the world’s largest economy is slowing gaining some traction. Looking ahead today the New Zealand dollar opens noticeably stronger currently buying 82.38 US Cents.

We expect a range today of 0.8190 - 0.8280

Great British Pound
In what was an overall positive session for the Sterling on Friday the Great British Pound managed to advance more than a cent against its US Counterpart. In the absence of any local data to provide support, market sentiment pushed the Sterling to a 24 hour high of 1.5839 having traded as low as 1.5693 earlier in the day. With the FTSE 100 gaining 0.4 percent, markets have been well supported following renewed optimism that the US economic recovery is strengthening and that conditions throughout the broader 17-nation Euro-Zone have stabilised. Looking ahead this week, inflationary data due for release on Tuesday remain the headlined figure on investor’s minds as the Sterling tries to break-down stiff resistance around the 1.60 handle. Meanwhile this morning the Sterling opens stronger against both the Australian Dollar (1.4951) and the New Zealand Dollar (1.9207) which have both benefitted from the strong shift towards risky asset classes.

We expect a range today of 1.4890 – 1.5000

Majors
Despite a string of poor data releases out of the US on Friday markets advanced as attention focused on traditional equity gains. With the S&P 500 closing at its highest level since May 2008, a classic shift away from safe-haven assets saw the Greenback weaken against a handful of its major trading counterparties, including the Japanese Yen as the USD/JPY Cross opens lower this morning at a rate of 83.406. Headlining the disappointing fundamentals on Friday were US Industrial Production figures which recorded zero growth for the month of February against an expected growth reading of 0.4 percent. Combine this with weak Core Inflationary figures and an average consumer sentiment reading and it’s a good thing investors were more interested in key psychological gains across equity markets. Also benefitting from the shift in risk sentiment was the 17-Nation Euro which after trading between a 24 hour range of (1.3078- 1.3186) against its US Counterpart opens a full cent stronger this morning currently swapping hands at a rate of 1.3790.

Data releases

AUD:
RBA Gov Stevens Speaks

NZD: Westpac Consumer Sentiment

JPY:
No Data Today

GBP: Inflation Report Hearing

EUR:
Current Account

USD:
NAHB Housing Market Index