Australian Dollar
In a frantic start to the week The Australian dollar rallied upon opening yesterday after data over the weekend showed manufacturing PMI figures out of China comfortably beat expectation. After initially jumping to an early morning high of 1.0452 against its US Counterpart the Aussie Dollar subsequently ran out of steam for the remainder of the session. Despite a US report which also showed manufacturing had expanded in the month of February the commodity-based currency was unable to extend on its early gains. Opening this morning at a rate of 1.0416, The Reserve Bank of Australia are expected to maintain the official benchmark cash rate at 4.25 percent when they meet at 2:30pm this afternoon. In what is shaping up as a busy day, further downside risks remain a threat should a rate cut or hint of future cuts eventuate.

We expect a range today of 1.0340 – 1.0480

New Zealand Dollar
In a rollercoaster ride for kiwi the New Zealand Dollar yesterday the early signs were good for the Kiwi as it climbed to an early morning high of 0.8255 against its US Counterpart. Investors demand for the higher-yielding asset was underpinned by optimism out of China that the world’s second largest economy was back on track following better than expected manufacturing figures for the month of February. Despite the early rally the Kiwi was unable to hold on to its early gains falling for much of the Asian season. Meanwhile today the New Zealand Dollar opens at a very similar level to where we opened yesterday currently buying 82.33 US Cents. Following on from the positive news flows out of the US overnight and in absence of any local data today, short-term direction is again likely to come from global risk-flows as well as external data releases.

We expect a range today of 0.8180 – 0.8280

Great British Pound
Following US and Chinese Manufacturing figures higher yesterday British manufacturing activity also managed to surprise on the upside expanding at its fastest pace in 10 months for the month of March. With data releases coming from all angles over the past 24 hours, The Great British Pound has managed to find only minor support up above the 1.60 level against its US Counterpart. Having traded between an overnight range of (1.5978 - 1.6062) we open this morning at a rate of 1.6024. With the Economic Calender heating up for the rest of the week the Bank of England are expected to meet overnight on Wednesday. Taking a brief look at the cross-rates this morning the Sterling opens stronger also against both the Australian dollar (1.5373) and the New Zealand Dollar (1.9452)

We expect a range today of 1.5320 – 1.5440

Majors:
US Stocks rose overnight sending the Dow Jones Industrial Average to its highest level since December 2007. Equity gains were triggered following the release of The Institute for Supply Managements Factory Index which rose to 53.4 from 52.4 a month earlier. In overall positive signs for the US economy it’s now hoped that an expansion in US manufacturing will help job creation whilst spurring increased business investment. Off the back of such news the Greenback retreated against a handful of its major counterparties as it opens lower against the Japanese Yen at a rate of 82.047. Jumping across to Europe and the good news story loses momentum as Euro-region Unemployment Surged to a 14-year high in figures released overnight. The jobless rate for the 17-nation Euros rose to 10.8 percent in February adding to signs the economy is likely to slip into recession for the first quarter this year. The positive news is markets won’t need to wait too long to find out given Euro-region GDP figures are due out this evening. In what’s shaping us a busy week the ECB is also due to meet on Thursday where it’s widely expected the official cash-rate will remain unchanged. Meanwhile this morning the Euro opens half cent weaker against the Greenback at a rate of 1.3320

Data releases

AUD:
Cash Rate, RBA Rate Statement

NZD: ANZ Commodity Prices m/m

JPY:
Average Cash Earnings y/y

GBP: Halifax HPI m/m, Construction PMI

EUR:
Final GDP q/q, PPI m/m

USD:
Factory Orders m/m, FOMC Meeting Minutes