Australian Dollar: The Australian Dollar managed to hang onto its gains above parity yesterday despite softer-than-expected retail sales data. Australian retail sales rose just 0.3 per cent in September reducing expectations as to the pace of rate hikes in 2011. However, the Aussie came through the data unscathed after reaching a high around 1.0060 earlier in the session. Greenback weakness continues to be a dominant theme after the US Federal Reserve yesterday finally announced its plans to pump more money into the economy by purchasing its own securities. The Aussie opens at fresh 28-year highs at 1.0160 as commodity prices surged overnight. Gold is up sharply to US$1,384/oz.

We expect a range today of 1.0080 - 1.0200

New Zealand Dollar: Better-than-expected jobs local jobs data yesterday sent the kiwi soaring towards 0.7880 during the domestic session. As if a weak greenback wasn't enough, the unemployment rate for the third quarter came in at 6.4 per cent down from 6.9 per cent, prompting investors to buy New Zealand dollars as confidence in the economy returns. During the offshore session the kiwi hit fresh two-and-a-half year highs around 0.7975 as commodity prices soared. Against the Australian dollar, the unit is also higher at 0.7820.

We expect a range today of 0.7900 - 0.8000

Great British Pound: Pound Sterling (1.6280) opens at a ten-month high after the Bank of England held its benchmark interest rate at 0.5 per cent and kept its bond-purchase program unchanged. The currency hit an overnight high of 1.6298. Also assisting sterling overnight was a weak greenback across the board and a stronger-than-expected rise in UK house prices for October which climbed 1.8 per cent from the previous month. Meanwhile, the pound has been marginally outperformed overnight by both its Australian and New Zealand counterparts and opens on Friday at 1.6035 and 2.0469 respectively.

We expect a range today of 1.5925 - 1.6040

Majors: The so-called big dollar tumbled once more overnight as FX markets continued to digest the quantitative easing measures announced by the US Federal Reserve on Thursday. By contrast, the European Central Bank (ECB) is likely to signal as early as next month it plans to exit recent stimulus measures. The ECB kept its benchmark interest rate on hold at 1 per cent as president Jean-Claude Trichet noted at a press conference overnight that "the non-standard measures are by definition temporary in nature". The 16-nation currency has held onto its recent gains above 1.4000 and overnight hit fresh 10-month highs at 1.4281. Meanwhile, the dollar opens at 80.61 against the Japanese Yen.

Data releases

AUD: RBA quarterly monetary policy statement

NZD: no data today

JPY: BoJ rates decision

GBP: PPI, Oct

EUR: EZ Retail Sales, Sep

USD: Non-farm payrolls, Oct

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