Australian Dollar
The Australian dollar managed to find some upside yesterday after Reserve Bank Governor Glenn Stevens expressed confidence in China’s economic growth. Speaking at a conference in Hong Kong Mr Stevens re-iterated that he expected China’s growth to remain strong, on average for years to come with such statements being generally supportive of investor’s interest in the Australian Dollar. Combined with some solid gains on Wall Street overnight the Australian Dollar reached a 24 hour high of 1.0636 against its US Counterpart as it opens this morning slightly stronger than where we saw it yesterday currently swapping hands at a rate of 1.0605. Looking ahead today minutes from the Reserve Bank’s March Meeting are due for release this afternoon with any further hints of future rate cuts likely to have a dampening effect on the Australian currency

We expect a range today of 1.0540 – 1.0650

New Zealand Dollar
The Westpac McDermott Consumer Confidence Index rose to a measly 102.4 for the March 2012 quarter, in figures released yesterday, only slightly higher than the large drop witnessed from December’s reading of 101.3. Despite consumer confidence remaining relatively weak the outlook for the New Zealand dollar remains far from grim as its recent strength against its US Counterpart continued for much of yesterday’s session. After opening the day at a rate of 0.8232, in what was an overall tight session of trading, eventual highs were found around the 82.85 US Cents mark. With demand for the South Pacific currency well supported by Asian stocks the New Zealand Dollar has fared well in the early parts of this week as it opens stronger against the Greenback currently trading at a rate of 0.8261

We expect a range today of 0.8210 – 0.8310

Great British Pound
The Great British Pound advanced yesterday after Rightmove HPI figures released overnight showed new home sellers increased prices by 1.6 percent, the largest first quarter increase since 2004. Whilst such figures were above expectation the overall market’s reaction was relatively muted as investors wait for the official inflation figures which are due for release overnight this evening. With the shine coming off the Greenback somewhat for the early parts of this week the Great British Pound has advanced against a weaker US Currency, trading to an overnight high of 1.5982. In what has been an overall sluggish 24 hours the Sterling opens around half a cent stronger this morning at a rate of 1.5892. A quick look at the cross rates also sees some critical levels approaching with the Sterling opening stronger against both the Aussie (1.4982) and the Kiwi (1.9230) respectively.

We expect a range today of 1.4920 – 1.5040

Majors
In a very subdued session overnight, markets have continued to stabilise for the early parts of this week, doing well to consolidate the strong gains witnessed across global markets. The Standard & Poor’s 500 Index added 0.4 percent yesterday while 10-year treasuries extended their longest slump since 2006 off the back of renewed optimism that the global economy will continue to strengthen. With currency flows over the past 24 hours tending to favour those with a more risky back-drop the Greenback has come under some consistent selling pressures as the USD/JPY opens lower this morning at a rate of 83.321. Jumping across to Europe it was a similar story for the 17-nation Euro which has enjoyed decreased volatilities of late. In the absence of any specific data releases the shared unit has traded between a 24 hour range of (1.3141 - 1.3266) as it opens more than a full cent stronger against its US Counterpart this morning at a rate of 1.3239.

Data releases

AUD:
CB Leading Index m/m, Monetary Policy Minutes

NZD: No data Today

JPY:
Bank Holiday

GBP: CPI y/y, RPI y/y, CBI Industrial Order Expectations

EUR:
German PPI m/m

USD:
Building Permits, Housing Starts, Fed Chairman Bernanke Speaks