Australian Dollar: After the Australian dollar opened at a rate of 1.0492 against the Greenback yesterday the A$ dollar was sold early as it received mixed leads from the Asian session.

With news of further earthquakes' in Japan and softer commodity prices, investors sought relieve in the safe-haven US based currency. As the sell off continued the Japanese government upgraded the severity level of the nuclear crisis to its highest level.

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After reaching an eventual low of 1.0431 the Australian Dollar opens this morning at a rate of 1.0438. In addition to a handful data releases in Japan and China today, Westpac Consumer Sentiment is out at 11.30AM, with the result potentially likely to add to Aussie intraday movement.

We expect a range today of 1.0380 - 1.0480

New Zealand Dollar: Investors sold off risk in Asia after Japan raised the severity rating of the Fukushima nuclear disaster to Chernobyl levels.

Moving offshore the New Zealand Dollar advanced to 5 month highs as investors recovered and the market returned to risk on reaching 0.7883 against the Greenback Overnight the US Trade deficit shrank 2.6%, narrowing less than economist forecasts indicating soaring commodity prices may burden the world largest economy.

However, Reserve Bank Governor Alan Bollard said New Zealand's agricultural exports are expected to continue support the New Zealand economy and may feed inflation. This morning the Kiwi opens buying 0.7833 US.

We expect a range today of 0.7750-0.7870

Great British Pound: Offshore the Pound slid to 1.6225 against the US Dollar after inflation unexpectedly slowed for the first time in 8 months. Consumer prices rose 4% for the year ending in March falling short of market expectations for the first time since August.

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The BCR reported retail sales tumbled 1.9% over the same period dampening any expectations of a rate hike by the Bank of England in the near future. Meanwhile the Pound opens this morning at 1.5572 Aussie and lower against the Kiwi at 2.0756.

We expect a range today of 1.5530 - 1.5610

Majors: The Euro advanced against the UD Dollar offshore challenging 1.4500 despite lacklustre German ZEW readings. The German ZEW Economic Sentiment survey missed expectations, declining for the second consecutive month to 7.6. German inflation also unexpectedly accelerated 2.2%, the fastest pace in 2 ½ years in March on rising energy costs. Meanwhile the US Dollar opened offshore at 83.41 against the Japanese Yen. Investors' unwound Greenback positions as risk appetite returned to the market following Japans upgrade of its nuclear disaster. The U.S. reported a narrower trade deficit with underlying figures showing imports outpacing exports.

Data releases

AUD: Westpac Consumer Sentiment

NZD: REINZ HPI m/m

JPY: No data Today

GBP: Claimant Count Change, Unemployment Rate

EUR: Industrial Production

USD: Retail Sales

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