Australian Dollar:
Stopping 30 basis points shy of its highest level in two months during domestic trade yesterday the Australian dollar received a boost following comments from the RBA which stated global conditions have improved significantly, reducing the likelihood that interest rates will fall when policy makers meet next Tuesday. Despite some strong early gains, the Australian dollar tumbled as it entered offshore markets as investors retreated to the deepest and safest markets. Driving risk aversion, weak demand at an Italian bond-auction, ongoing sings of political instability in Italy as well as the re-opening of Cyprus banks have all added to the sour taste across markets this morning. Losing close to half a cent from opening levels yesterday the Australian dollar is lower as it currently buys 104.40 US Cents.

We expect a range today of 1.0400 – 1.0470

New Zealand Dollar
The New Zealand dollar has fallen over the past 24 hours with the focus of investors once again shifting back to Europe. Driving a move away from assets deemed riskier in nature, the fear that depositors elsewhere in Europe may potentially be hit with similar losses to what has been imposed in Cyprus has essentially forced Cyprus banks to put strict conditions on withdrawals when banks next open. Moving from an opening level of 0.8389 against its US Counterpart the New Zealand dollar reached an overnight low of 0.8342 as the Kiwi opens weaker this morning at 0.8368.

We expect a range today of 0.8330 – 0.8400

Great British Pound:
In figures released overnight Britain’s economy contracted by 0.3 percent in the final quarter of 2012, matching previous estimates. In a busy session UK’s current account also widened by a larger than expected amount in last year’s final quarter further worsening Britain’s’ financial standing. Dropping by half a cent against its US Counterpart the Great British Pound is marginally lower this morning at 1.5125. Whilst lower against the Greenback, the notable shift away from riskier backed assets has in fact helped the Sterling when compared against the Aussie (1.4485) and the Kiwi (1.8068) with both crosses trading higher this morning.

We expect a range today of 1.4450 – 1.4510

Majors:
The US Dollar is marginally stronger this morning whilst the Euro fell to less than 1.2800 overnight for first time in four months. Dropping to an eventual low of 1.2749 against its US Counterpart the large losses across the shared unit were triggered as demand fell at an Italian bond auction whilst political instability throughout the nation also did little to help. With Cyprus banks also set to open over the coming 24 hours strict conditions have been imposed to ensure there aren’t mass withdrawals. In what has been a damaging week for those wanting to talk up the prospects of the Euro-zone the shared unit opens weaker against all 16 of its counterparties this morning at a rate of 1.2770. In other happenings, disappointing Pending Homes Sales figures in the US also did little to improve sentiment with investors being forced to halt the advances of the S&P 500. On the outlook today ranges are expected to tighten as we head into the long weekend Easter Break

Data releases

AUD:
MI Inflation Gauge m/m, Private Sector Credit m/m

NZD: Building Consents m/m

JPY:
Retail Sales y/y

GBP: GfK Consumer Confidence

EUR:
German Retail Sales m/m, German Unemployment Change, M3 Money Supply y/y

USD:
Unemployment Claims, Chicago PMI