Australian Dollar
The Australian dollar traded lower for much of yesterday' session as data flows out of China, Japan and the US all pointed towards a slowdown in global economic growth. In reports released out of China intraday consumer prices rose at their slowest pace in more 2 years, adding to speculation China will again seek to lower borrowing costs after the two interest rate cuts already seen this past month. With ANZ jobs advertisements also falling short of expectation the Australian dollar managed to lose around half cent against its US counterpart during Asian trade reaching an eventual low of 1.0154. Today an NAB Business Confidence Survey due for release this morning remains the pick of an otherwise quite economic docket as the Australian dollar opens relatively unchanged at a rate of 1.0204.

We expect a range today of 1.0160 - 1.0250

New Zealand Dollar
In a rollercoaster ride for the New Zealand dollar yesterday the early signs were not positive with the Kiwi being dragged lower as a result of a disappointing inflationary reading out of China. Whilst New Zealand’s largest trading partner continues to show signs of vulnerability a sense of déjà-vu is again hanging over markets this morning as investors nervously await the outcome of further European FinMin meetings currently underway in Brussels. After dipping as low as 0.7928 against its US counterpart, earlier losses turned to gains as North American traders came to the table taking the Kiwi into some congested territory around 79.80 US cents. Opening this morning at 0.7963 critical resistance remains well in tact at 80 US cents

We expect a range today of 0.7620 - 0.7710

Great British Pound
The Great British Pound has done well to open stronger against its US counterpart this morning, given UK stocks were knocked about as a result of ongoing sovereign debt concerns throughout Europe. Trading as high as 1.5534 Sterling attracted some solid bids and it opens around half a cent stronger at a rate of 1.5527. Given the recent efforts of the BOE to insulate the British Economy from broader Europe there appears some evidence to support the notion of investors seeking the Sterling as safe-haven, at least when compared to the Euro. Meanwhile when comparing against both the Aussie and the Kiwi the story is a similar one with around half a cent on the upside being found against both crosses, opening stronger at rate 1.5217 and 1.9486 respectively.

We expect a range today of 1.5170 - 1.5250

Majors
US Stocks fell overnight continuing their longest slump in over a month. With 10-yr Spanish bond yields again surging past the unsustainable 7 percent level, concerns have intensified over Europes ongoing sovereign debt crisis as investors maintain their focus on Brussels where European Leaders are once again meeting in an attempt to finalise measures adopted at last month’s Summit. Whilst the ECB did provide some support to the struggling Euro last week, Spain’s hike in borrowing costs has again highlighted how real the threat has become within peripheral bond markets as current yields mark a similar level to where Greece, Ireland and Portugal have all put their hands up for bailouts in the past. Trading between a range of 1.2255 - 1.2323 investors remain wary of the shared unit having touched multi year lows late last week. Meanwhile this morning the Greenback remains well supported as it opens stronger against the Japanese Yen at 77.565.

Data releases:

AUD: NAB Business Confidence

NZD: NZIER Business Confidence, RIENZ HPI m/m

JPY: M2 Money Supply y/y

GBP: BRC Retail Sales Monitor, RICS House Price Balance

EUR: French Industrial Production m/m, Italian Industrial Production m/m

USD: No Data Today