Australian Dollar:

The Australian Dollar was sold heavily throughout the domestic session yesterday as the Reserve Bank of Australia kept the official cash rate unchanged at a rate of 4.75 percent. Although such decisions came as no surprise to the market it was the accompanying statement of Governor Glenn Stevens that “growth through 2011 is now unlikely to be as strong as earlier forecast” which saw the Australian Dollar sold off as a consequence reaching an eventual 24 hour low of 1.0663 against its US Counterpart .

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Given it has now been 8 months since the RBA last rose rates and with further interest rate rises now even less likely in the near term the Australian Dollar opens this morning noticeably lower at a rate of 1.0690

We expect a range today of 1.0650 -1.750

New Zealand Dollar:

The New Zealand Dollar rose to a new-post float high yesterday as the latest NZIER quarterly Survey showed Business Confidence has bounced back strongly after the deadly Earthquakes which hit Christchurch earlier this year. With the currency being traded to reach a 24 hour high of 83.30 US Cents the New Zealand Dollar appears well supported up around these levels. Tomorrow the Market looks ahead to the release of national growth figures with any expansion above expectation likely to add to speculation of a Central Bank rate rise sooner rather than later. Meanwhile this morning following a fresh bout of Risk Aversion which saw the New Zealand Dollar sold down overnight reaching a low 0.8232, the kiwi opens this morning weaker against it''s US Counterpart a rate of 0.8261

We expect a range today of 0.8210 – 0.8310

Great British Pound:

UK Stocks advanced for an eighth consecutive day yesterday as the Great British Pound opens higher this morning currently trading a rate of 1.6065 against its US Counterpart. Following a relatively subdued start to the Asian Session the pound rallied to reach an eventual high of 1.6127. Whilst neighbouring Euro Countries continue to be weakened amid ongoing sovereign debt concerns a June Services PMI Report released overnight did buck the trend of weak economic data showing a modest rise from May which also contributed to the Sterling’s strength. Meanwhile this morning the Pound also opens higher against the Australian Dollar at a rate of 1.5029.

We expect a range today of 1.4980 - 1.5085

Majors:

US Treasuries rose yesterday snapping a five-day losing streak as Moody’s Investors Service downgraded Portugal’s Debt level to junk. With such a credit downgrading making Portugal the second euro-nation behind Greece to be hit with a non-investment grade rating, fresh fears have again surfaced surrounding the financial stability of the broader Euro Zone. As a result overnight the EURO was sold to reach an eventual low of 1.4396 as investors flocked into assets deemed safer such as the Greenback as the US Based Currency opens stronger against the Japanese Yen this morning at a rate of 81.056. Sending US equities lower overnight also was a report out of the US indicating Factory orders increased at a slower pace than anticipated pace for the month of June as ongoing weak economic data continues raise concerns over the pace of growth for the world’s largest economy.

Data releases

AUD: No Data

NZD: No Data

JPY: Leading Indicators

GBP: No Data

EUR: German Factory Orders

USD: ISM Non-Manufacturing PMI

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