Australian Dollar:
The Australian dollar remained firm on Friday doing well to consolidate its gains after a generally positive week of trading. Reaching highs of 1.0459 against its US Counterpart optimism that a bailout deal in Cyprus would be reached has dominated financial headlines over the weekend with the picture set to become even clearer over the coming 24 hours. With the strength of the Euro likely to remain critical for Australian dollar direction, RBA Governor’s speech in Sydney tomorrow will be closely watched by investors. Opening this morning overall unchanged at a rate of 1.0443, selling of the Greenback will need to continue if we are to see levels in excess of the 1.05 mark.

We expect a range today of 1.0410 – 1.0480

New Zealand Dollar
Benefitting from upbeat manufacturing data out of China last week the New Zealand dollar is firmer this morning as it currently buys 83.52 US Cents. With talks of a Cyprus bailout steeling the market’s attention for the best part of last week, fears of contagion should an agreement not be reached have thus far failed to spark the sell-off that many expected would occur. Highlighting just how resilient market players have become comments made by Fed Chairman Ben Bernanke on Thursday of last week that most MPC members agreed that ongoing bond purchases continue to support growth and job creation has definitely weighed on the Greenback, helping the Kiwi in comparison. Having held onto gains of around half a US Cent advances above the 84 US Cents mark appear a stretch, at least in the short-term.

We expect a range today of 0.8320 – 0.8380

Great British Pound:
The Great British Pound remained well supported late last week that is despite ongoing bailout negotiations in Cyprus as well as the fact Britain continues to move closer to losing its AAA Credit Rating as a result of persistently weak growth. Whilst the Sterling strengthened to a high of 1.5226 against the Greenback, should Cyprus fail to reach an agreement a sell-off in risk across the board would surprise very few. This morning The Great British Pound is stronger also against the Aussie (1.4574) however weaker against the Kiwi (1.8213).

We expect a range today of 1.4540 – 1.4600

Majors:
Currency markets remained jittery on Friday as optimism surrounding a potential Cyprus bailout helped support the Euro. Jumping from opening levels of 1.2895 the shared unit briefly flirted with levels in excess of 1.30 after investors speculated a deal would be reached over the coming 24 hours. In the absence of a notably stronger Euro, the Greenback remained under pressure late last week following comments from the US Federal Reserve that bond purchases continue to have a positive impact on growth, hence diminishing the likelihood that markets have seen the end of quantitative easing. Despite a string of positives out of the world’s largest economy on Friday, including a better than expected Philly Fed Manufacturing Index reading the USD/JPY is lower this morning as it swaps hands at a rate of 94.50.

Data releases

AUD:
No data today

NZD: No data today

JPY:
No data today

GBP: Nationwide HPI m/m, BBA Mortgage approvals, 10- y Bond Auction

EUR:
Italian 10-y Bond Auction

USD:
Fed Chairman Ben Bernanke Speaks