Australian Dollar:
Despite a handful of positive data releases locally last week including strong building approvals, accelerated retail growth and improved trade figures it’s been the sharp fall in the value of the Japanese Yen which has triggered the move away from the Australian dollar. Given the announcement of substantial stimulus by the Bank of Japan traders have shifted their holdings away from the higher yielding asset and back into the US dollar. Falling to an overnight low of 1.0353 the Australian dollar opens close to those levels this morning at a rate of 1.0368. On the outlook this week inflationary figures out of China tomorrow followed by local employment figures on Thursday remain the pick on a slightly quieter economic calendar.

We expect a range today of 1.0330 – 1.0400

New Zealand Dollar
The New Zealand dollar swung between gains and losses on Friday in what was on overall choppy session of trading. Keeping its head up above the 84 US Cents mark for much of the day disappointing US non-farm payrolls data did little to help improve global risk sentiment. With so much of the Kiwi’s direction being dictated by offshore happenings its value against the Greenback has diminished since the Bank of Japan announced that it would embark on asset purchases worth 7 trillion Yen a month. Dropping as low as 0.8373 against the Greenback the New Zealand dollar is lower this morning at 0.8413.

We expect a range today of 0.8380 – 0.8440

Great British Pound:
Boosting demand for safe haven assets a report on Friday showed US payrolls grew by the smallest amount in nine-months. With UK government bonds advancing there yields tumbled by the largest amount since September last year. Further adding to the strength of the Great British Pound the BOE’s decision to keep asset purchases on hold at 375 billion pounds last Thursday has, at least in the short-term done the nation’s currency a favour . Strengthening to its highest level in six weeks against the US dollar the Sterling is stronger this morning at 1.5330. Meanwhile on the cross rates the Sterling’s impressive form is just as noticeable when valued against the Aussie (1.4770) and the Kiwi (1.8198).

We expect a range today of 1.4740 – 1.4800

Majors:
The US Dollar continued to strengthen late last week after the Bank of Japan on Thursday announced plans to spend 7 trillion yen a month on assets in an attempt to stimulate growth and curb deflation. Whilst the US dollar opens this morning notably stronger US Stocks fell on Friday, capping their biggest weekly drop this year after data showed the world’s largest economy added less half the expected number of jobs in March. Given only 88 000 jobs were created, well below the forecasted figure of 198 000, such figures are even more surprising given the string of positive data flows of late. Whilst on the US Dollar the USD/JPY continued to march forward on Friday reaching highs in excess of the 98.00 mark with investors seemingly happy to sell the Japanese Yen in big quantities. Meanwhile in Europe on Friday there were plenty of data releases to keep investors interested with figures showing retail sales dropped by 0.3 percent in March whilst Factory orders in Germany grew by 2.3 percent. Reaching highs of 1.3038 against the Greenback the Euro is stronger this morning at 1.2992.

Data releases

AUD:
ANZ Job Advertisements m/m, AIG Construction Index

NZD: No data today

JPY:
Current Account

GBP: No data today

EUR:
German Industrial Production m/m, Sentix Investor Confidence

USD:
No data today