Daily forex forecast

:: Australian Dollar: The Australian Dollar took a break yesterday, moving in a very quiet 30 pip range against the USD after recent volatile trade. Entering the European session just above 97 cents, the Aussie decided to make a break and rallied to a high of 0.9780 before settling around 0.9740/50. Helped by disappointing US employment data the markets saw a rally back towards 98 cents but resistance was once again met just above previous levels and the Aussie Dollar finishes the off-shore session around 0.9770. Today's Asian session brings the release of the AIG Construction Index and most importantly local unemployment figures, with surveyed economists expecting the unemployment rate to remain unchanged at 5.1%. Current momentum and bullish sentiment for the AUD may see it take a crack at the 98 cent handle in the event of favourable figures, with initial intraday support lying at 0.9750 and below this at 0.9730.

- We expect a range today in the AUD/USD rate of 0.9720 to 0.9800

:: Great Britain Pound: Another quiet player during the day yesterday the Great British Pound entered its local session just above 1.5900, but steadily moved lower, testing support at 1.5830. Unlike the Yen and the Aussie Dollar, Sterling felt the weight of the ADP Payroll figures and this contributed to the currency's retreat. Ultimately however, it was the Greenback that suffered and Sterling managed to recover some of these losses reasonably quickly, rallying back above 1.5900. Opening today just below at 1.5890 the main focus will be this evening when the Bank of England announce its official Cash Rate, widely expected to be held at 0.5%, and the Monetary Policy Committee make the accompanying statement. Also on the cards is the release of the country's Asset Purchase Facility which will show the total value of funds the BoE plan to invest in the open market.

- We expect a range today in the GBP/AUD rate of 1.6200 to 1.6325

:: New Zealand Dollar: After remaining comfortably above 74 cents since Tuesday evening, the New Zealand Dollar has now managed to break 0.7500 quite comfortably overnight as the US Dollar weakens. New resistance has been established at 0.7550 where the Kiwi's rally was capped and some profit-taking has seen the currency pair consolidate around 0.7520; with support at 0.7500 holding strong since the break. Upcoming economic data is currently thin for New Zealand with nothing of note expected until mid-next week. Direction is thus most likely to be based on risk sentiment and anyone with a vested interest in the Kiwi will be watching Friday's much anticipated U.S. Non-Farm Payrolls.

- We expect a range today in the NZD/USD rate of 0.7475 to 0.7550

:: Majors: The Japanese Yen has reached new 15-year highs overnight, breaking below 82.80 against the Greenback on the back of an unexpected 39K drop in ADP Non-Farm Employment. In comparison to the expected 23K increase, this drop has cast a shadow of uncertainty over the U.S. economy with the International Monetary Fund also cutting its global growth forecasts overnight. After finding support just above 82.75 USD/JPY adjusts back towards the 83.00 mark and starts today's Asian session around 82.90. The US Dollar is suffering against most of the major currencies ahead of Friday's payroll figures and the Euro has taken the opportunity to break through 1.3900, capping just above 1.3940. Currently consolidating just above 1.3930, investors will be watching closely this evening when the European Central Bank announces its monthly interest rate decision and the entailing press conference. Support for the single currency is at 1.3830, with a considerable psychological upside barrier at 1.4000.

:: Data Releases: