Australian Dollar
The Australian dollar lost some solid ground against its US Counterpart in overnight trade with a sense of normality returning to markets following the Easter Long weekend. Given markets were in full attendance Friday’s disappointing non-farm payroll data triggered losses across equity markets resulting in investors steering well and truly clear of riskier asset classes. After starting the day at a rate of 1.0311 against is US Counterpart the Australian dollar finds itself trading at a much lower level this morning at a rate of 1.0249. Looking ahead this week Labour market data which is due for release Thursday remains the pick of data locally with debt contagion fears out of Europe likely to drive overall market sentiment in the coming days.

We expect a range today of 1.0200 - 1.0300

New Zealand Dollar
The New Zealand Dollar followed global equities lower yesterday after renewed concerns about Spain’s growing debt saw investors run for safety. With Global sentiment taking a hit overnight the New Zealand Dollar traded to 24 hour low of 0.8119 against its US Counterpart more than a full cent lower than where it started the day. Given the recent advance of the Greenback and ongoing fears of contagion throughout Europe there remains some nervous times for Kiwi as the 81 US Cents level appears likely to be tested over the week ahead. Meanwhile this morning the New Zealand institute of Economic Research survey of business opinion is scheduled for release at 9am as the Kiwi currently trades close its overnight low currently buying 81.46 US Cents

We expect a range today of 0.8100 – 0.8180

Great British Pound
With the majority of market participants returning after the long Easter weekend, UK Stocks were sold across the board yesterday. Given a generally firmer US Dollar the Great British Pound followed local stocks lower driven mainly by fresh fears that Spain is likely to trigger another spell of debt contagion fears throughout global markets. In what is shaping up as a relatively light week of data releases, Sterling direction is again likely to be dictated by market sentiment driven by neighbouring Europe. Meanwhile this morning the Great British Pound opens in familiar territory against its US Counterpart currently swapping hands at a rate of 1.5858, around a third of cent lower than where we kicked started yesterday

We expect a range today of 1.5410 – 1.5520

Majors:
US Stocks declined for a fifth straight day as the S&P 500 Index extended its longest losing streak since November last year. Driving the move away from equity markets overnight the yield on Spain’s 10 year benchmark bonds surged 20 basis to 5.95 percent after The Bank of Spain announced that the Nations lenders may need additional capital if the economy were to weaken further. Given the very real fears that Spain’s debt situation is set to worsen, the weakness of the government’s finances are unlikely to do the shared currency in favours as the EURO was sold across the board in overnight trade. Having traded between a 24 hour range of (1.3053 – 1.3143) the EURO opens noticeably lower this morning at a rate of 1.3077. With fears of European Debt contagion gripping markets overnight, the flow on effects of Friday’s disappointing US Employment data also filtered through. In a speech made yesterday US Fed Chairman Ben Bernanke shied away from any comments regarding QE3 whilst again emphasising the road ahead for the US Economy is likely to remain a bumpy one. Whilst the Greenback was the major benefactor of flows into the safe-haven unit overnight the US currency opens weaker against the Japanese Yen this morning at a rate of 81.68

Data releases

AUD:
Westpac Consumer Sentiment, Home loans m/m

NZD: REINZ HPI m/m, NZIER Business Confidence

JPY:
Core Machinery Orders m/m, Bank Lending y/y

GBP: BRC Retail Sales Monitor y/y

EUR:
German WPI m/m

USD:
Beige Book, Federal Budget Balance