Australian Dollar: Australian Building Approvals fell by 15.9% for the month of January and our Trade Balance narrowed it was revealed yesterday. The Aussie Dollar proceeded to test support at 1.0150 after spending the morning slightly higher around 1.0170 but losses were minimised as the reduction in our Trade surplus was less than expected.

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Continuing to push higher into European and North American hours levels near 1.0190 were being tested before the release of US Unemployment Claims figures resulted in the US Dollar pushing the Australian Dollar almost 60 points lower to 1.0125. Unable to keep the Aussie down, we open this morning back above 1.0150, currently at 1.0160.

We expect a range today of 1.0090 - 1.0190

New Zealand Dollar: The New Zealand Dollar has once again been pushed back under the 74 cent handle as positive US unemployment figures gave rise to a Greenback rally. Prior to this the Kiwi had quite steadily been reclaiming its losses incurred from PM Key's words yesterday that the economy could slip back into recession and an interest rate cut would be welcomed. After finding a bottom at 0.7390 the Kiwi valiantly pushed back to 0.7470 before off shore events meant it was once again testing 0.7390 support. Opening today just above 74 cents, the story is not any more favourable against the Aussie. After falling back near 1.3600 the Australian Dollar has managed to hold above and also proceed to break through 1.3700 overnight, opening today right on the handle.

We expect a range today of 0.7370 - 0.7460

Great British Pound: The Pound has suffered across the board as the ECB clearly displays willingness to raise interest rates, something investors are waiting for the Bank of England to stand up and say. Before Trichet spoke Sterling was already under pressure as a fall in Services PMI saw Cable drop from 1.6320 to 1.6275 and despite an attempt to reclaim losses, Trichet's words soon saw the currency pair back down at these levels. Support appears to be holding at 1.6250 for the time being with tonight's Non-Farm Payrolls potentially causing another test of its strength. Against the Aussie and the Kiwi, the Pound is trading at 1.6030 and 2.1950 respectively.

We expect a range today of 1.5950 - 1.6100

Majors: The European Central Bank decided to keep interest rates on hold at record lows of 1% last night however the Euro has risen to four month highs on the ECB's accompanying statement. President Jean-Claude Trichet said he intends to monitor inflation and monetary policy with 'strong vigilance' and made it clear a 25 basis point hike is very possible at next month's meeting. Markets reacted favourably to the news and the shared currency leaped from 1.3850 to test highs near 1.3970 almost immediately, with the pair consolidating around 1.3930/50. Although the Greenback found it difficult to post any gains against the Euro after Trichet's statement, it did post an impressive rally against the Japanese Yen after Unemployment Claims in the US were shown to decrease by 20,000 opposed to an expected increase of 6,000. Rallying to 1 week highs the US Dollar reached 82.45 Yen off the back of the positive news, which sets a good base for tonight's Non-Farm Payroll figures.

Data releases

AUD: No data due for release

NZD: No data due for release

JPY: No data due for release

GBP: Halifax HPI m/m

EUR: No data due for release

USD: Non-Farm Employment Change; Unemployment Rate; Factory Orders m/m

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