Australian Dollar:

The Australian Dollar advanced yesterday gaining ground against 15 of its 16 major counterparts. While the Australian Currency initially opened at a rate of 1.0525 against the Greenback the Aussie dollar was bought to reach and eventual high of 1.0714.

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Driving the Aussie yesterday the market saw the release of Industrial Production Figures out of China with a positive reading of 13.3 percent beating market expectations of 13.1 percent growth for the month of May. With Chinese Inflationary Data also coming in on expectation demand for commodity based currencies such as the Aussie Dollar was generated, as concerns were eased that the Chinese Economy may need to take further a tightening stance to cool overheating prices. This morning we see the Australian dollar open higher at a rate of 1.0683

We expect a range today of 1.0640 - 1.0745

New Zealand Dollar:

The New Zealand Dollar was initially boosted yesterday as positive economic data out of China, showed a manufacturing sector which is still expanding potentially lifting demand for the goods produced locally and exported to China. The kiwi was purchased throughout the Asian Session and traded as high as 0.8214 against its US Counterpart. While the tremblers which struck Christchurch on Monday continue to create further delays in rebuilding, they have also added to the case for the New Zealand Central Bank to postpone any previously planned interest rate hikes. Meanwhile the kiwi opens this morning around 30 Basis points higher buying 81.78 US Cents as the market awaits the release of First Quarter Retail Sales, due out this morning

We expect a range today of 81.15 - 0.8210

Great British Pound:

The Great British Pound opens marginally higher this morning at a rate 1.6376 against the Greenback as UK Stocks also climbed for the second consecutive day. With economic data out of China and the US easing concerns over the pace of the economic recovery the Sterling was traded to an intraday high of 1.6440. In addition to the positive leads from Offshore, UK Inflation released yesterday also held at its fastest pace since 2008 for the Month of May, with Consumer Prices rising 4.5% matching the median forecast. Meanwhile the Sterling opens lower against the Australian Dollar this morning at a rate of 1.5327.

We expect a range today of 1.5295 - 1.5400

Majors:

A Retail Sales report released out of the US overnight showed that sales at major retailers fell for the month of May by 0.2 percent. Despite the decrease being smaller than the negative 0.3 percent figure forecast the dollar weakened, as the data reduced demand for safe haven assets such as the Greenback. In the EURO Zone overnight European Finance Ministers met to iron out an agreement as to how best deal with the region's largest debt-burden, Greece. Whilst European leaders continue to work towards a mutual commitment, the EURO is set to remain volatile in the short-term as it opens this morning marginally higher at a rate of 1.4441 against its US Counterpart. Meanwhile in Japan yesterday the Central Bank released a positive outlook for the economy, leaving the benchmark overnight rate unchanged as the Yen opens this morning higher at a rate of 80.428.

Data releases

AUD: Westpac Consumer Sentiment, MI Leading Index, Housing Starts q/q, RBA Gov Stevens Speaks

NZD: Retails Sales q/q

JPY: BOJ Monthly Report

GBP: Unemployment Rate

EUR: Industrial Production

USD: CPI m/m, Empire State Manufacturing Index, Industrial Production

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