Australian Dollar
The Australian appeared well supported above the critical 1.03 level against its US Counterpart yesterday after a private report showed improvement in China’s manufacturing industry last month. Easing concerns the world’s second largest economy will slow further the Australian Dollar found some upside intraday trading to a late afternoon high of 1.0354. Given a string of US and European data releases which came in well below expectation investors sold the Aussie as North American markets kicked off with the RBA’s decision to cut interest rates still having a lingering impact. Trading to an overnight low of 1.0284 it has been a rollercoaster ride for the local unit which has been tested twice this week around 1.03 handle without a whole lot of conviction. Meanwhile this morning the Australian dollar opens at a very similar level to where we left it yesterday currently swapping hands at a rate of 1.0333

We expect a range today of 1.0280 – 1.0380

New Zealand Dollar
The New Zealand Dollar was sold off consistently yesterday amid concerns weak employment markets throughout Europe will hamper broader efforts to stimulate global growth. With German unemployment rising and euro-area manufacturing figures disappointing markets, investors took the opportunity to sell riskier backed assets which saw the New Zealand Dollar drop more than half a US Cent, trading as low as 0.8104 at time of writing. In what has been a very bumpy ride for the Kiwi volatility is expected to continue into today with local unemployment figures due for release at 8:45am AEST. With the underlying unemployment rate tipped to remain unchanged at 6.3% in figure below this would see the 81.00 US Cents mark be surely breached

We expect a range today of 0.8040 – 0.8160

Great British Pound
In what has been a relatively disappointing session across Global Markets the Great British Pound struggled to advance on its recent gains losing a quarter of a cent against its US Counterpart. Struggling to maintain levels above the 1.62 level, significant headwinds in the form of German Unemployment and European PMI overshadowed better than expected Construction PMI figures produced locally. With the BOE set to decided next week whether further asset-purchases will be made to help stimulate growth, BOE Governor Mervyn King reiterated in a statement overnight that the Central Bank are prepared to accept the unpopularity of increased austerity ahead of growth stimulation as the UK economy struggles to get back to full health. Despite the struggles of the Sterling up against the Greenback the Pound opens stronger against both the Aussie (1.5684) and the Kiwi (2.0009)

We expect a range today of 1.5620 – 1.5730

Majors:
In another busy day across markets, the euro weakened for a third straight day against the dollar after disappointing German employment figures triggered a move away from the 17-Nation shared currency. After opening the day at a rate of 1.3235 against its US Counterpart a euro-area manufacturing report which showed the largest contraction in nine months also did little to help its cause. Falling more than half a US Cent we open this morning at rate of 1.3158 with pressure mounting on the ECB to cut interest rates from their current level of 1% when the Central Bank meets this evening to discuss the most appropriate Monetary Policy stance. Following a distinctive move by markets away from risk the US Currency strengthened against 15 of its 16 major peers overnight as investors nervously await the release of the all employment non-farm payroll figures which are due for release overnight Friday. With US unemployment remaining stubbornly high at a rate of 8.2 percent the US Federal Reserve are keen to see Labour Markets normalise before any moves are made which could potentially see the source of cheap funding across money markets dry up.

Data releases

AUD:
AIG Services Index

NZD: Unemployment Rate

JPY:
Bank Holiday

GBP: Nationwide HPI m/m, Halifax HPI m/m, Services PMI

EUR:
PPI m/m, French Industrial Production m/m, ECB Press Conference

USD:
Unemployment Claims, ISM Non-Manufacturing PMI, Prelim Unit Labour Costs q/q