Australian Dollar:
The Australian dollar dropped to its lowest level in over a week against the Greenback yesterday following the release of building approval figures which missed forecast. Tumbling to an intraday low 1.0220 Australian building approvals fell to their lowest level in seven months in March with the construction of new homes falling by staggering 5.5 percent. Whilst the Australian dollar has managed to bounce off key support levels around the 1.02 mark a report this evening which is projected to show US Unemployment remains at 7.6 percent will be key in determining short-term direction given a weak number would be US dollar negative. This morning the Australian dollar opens around a third of one cent lower at 1.0245.

We expect a range today of 1.0210 – 1.0280

New Zealand Dollar
In what’s been a relatively unimpressive week for New Zealand’s dollar the Kiwi has remained within its recent ranges over the past 24 hours. Having traded between a low of 0.8454 and a high 0.8510 against the Greenback investors have been reluctant to pick up the higher yielding asset given renewed concerns surrounding global growth. Leading to a spike in the demand for safer havens such as long-term government bonds, Unemployment figures expected from the world’s largest economy this evening will be closely watched. Opening this morning overall unchanged the New Zealand dollar currently buys 84.92 US Cents

We expect a range today of 0.8460 – 0.8520

Great British Pound:
Despite a positive construction PMI reading which showed output almost returned to growth in April the Great British Pound has struggled to advance from its recent highs. Although viewed as a positive for Britain’s economy which has managed to avoid an unprecedented triple dip recession in the first quarter this year there is a sense the Sterling has travelled a long way in a short space. Explained by a stronger US Dollar this morning the Sterling is weaker against the Greenback at 1.5527. Meanwhile on the cross rates the performance of the Sterling has been mixed given its stronger the Aussie (1.5150) whilst weaker against the Kiwi (1.8275)

We expect a range today of 1.5120 – 1.5180

Majors:
The euro has fallen for the first time in five days against the dollar after the European Central Bank cut its official cash rate from 0.75 percent to 0.5 percent. In a move which has surprised very few, this interest rate cut is the first in 10 months as Policy Makers also held out the possibility of further action to combat the recession-hit euro-zone economy. In response to soft inflation, economic stagnation and unemployment which sits above 12 percent, pressures will continue to mount on the ECB to roll out further Policy and more creative tools moving forward other than interest rate cuts. Moving from opening levels of 1.3178 the euro lost 100 bases points quickly as it opens this morning much lower at a rate of 1.3057. Meanwhile in the US, there has been a slight recovery in the US dollar overnight driven by unemployment claims which unexpectedly declined to a five year low as well as the trade deficit which narrowed in March as imports recorded their biggest jump since 2009. In positive signs for the world’s biggest economy its true test will be this evening given the scheduled release of non-farm payrolls data with job creation remaining a key and important indicator to consumer spending.

Data releases

AUD:
PPI q/q, AIG Services Index

NZD: No data today

JPY:
Bank Holiday

GBP: Services PMI

EUR:
EU Economic Forecasts, PPI m/m

USD:
Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings m/m, ISM Non-Manufacturing PMI, Factory Orders m/m