Australian Dollar
The Australian dollar has fallen overnight to its lowest level in over a month against the Greenback whilst also declining to a nearly two-month low against the Euro. Triggering the initial move lower Building Approvals for the month of July unexpectedly fell by a staggering 17.3 percent and whilst Private Sector Expenditure beat the majority of forecast the overall trend was lower as the local unit touched a 24 hour low of 1.0275 against its US Counterpart. Compounding the woes of the Australian Dollar a string of soft data releases out of both China and Japan have again triggered persistent concerns of global growth amongst falling commodity prices. With investors still eagerly awaiting the next move from the ECB and the US Federal Reserve, the Aussie Dollar is likely to come under some further selling pressures should stimulus measures not be forthcoming. Meanwhile this morning the Aussie opens half a cent lower against its US Counterpart at 1.0287.

We expect a range today of 1.0250 – 1.0330

New Zealand Dollar
In what has been a busy 24 hours for global markets, riskier backed assets have continued their decline in overnight trade as hopes fade that the US Federal Reserve will reveal fresh Stimulus measures whilst Spain have also delayed plans to ask for a bailout until the specific aid conditions are clear. In local happenings a National Business Confidence Survey revealed the overall business outlook remains encouraging as New Zealand fundamentals show sporadic forms of life. In a generally bearish day for the Kiwi, the higher yielding unit traded as low as 0.7968 against its US Counterpart, consolidating below the critical 80 US Cents level. In what’s shaping up a volatile session the kiwi opens this morning overall lower currently buying 79.75 US Cents.

We expect a range today of 0.7940 – 0.8010

Great British Pound:
Despite a report overnight which showed Mortgage Approvals rose in July from a previous 8 month low, UK Stocks along with the Great British Pound traded broadly lower. Acting as a catalyst behind the move their appeared a general realisation from investors that Ben S Bernanke will most likely not reveal any further details of a new round of stimulus this evening. With a handful of soft data flows out of Asia also putt the Sterling on the back foot the Great British Pound traded broadly weaker touching lows of 1.5770 against its US Counterpart. Despite its drop against the Greenback the Sterling has gained considerable ground against the Australian Dollar as investors continue their move away from riskier backed assets which sees the Sterling open close to a two month high against the Aussie at 1.5337.

We expect a range today of 1.5290 – 1.5370

Majors:
Global Stocks fell yesterday after news filtered through that Spain intended to delay asking for bailout funds until specific aid conditions became clear. Adding to the string of weak data flows overnight German Unemployment increased for a fifth straight month, retails sales in Japan fell by greater than expected amount whilst a US Report showed Consumer Spending also rose less than forecast. Bucking the trend of the past week, investors finally reacted to the underlying fundamentals, which has resulted in a noticeable shedding of risk ahead of the Jackson Hole Symposium due to commence this evening. With a distinct lack of news leading into last night things are set to heat up over the coming 24 hours highlighted by Ben Bernanke’s testimony as well as Chinese Manufacturing PMI figures which will be closely watched. On the currency front the main mover overnight was the Euro which after approaching an eight week high fell yesterday shedding a full half a cent as it opens lighter this morning at 1.2504 against its US Counterpart.

Data releases

AUD:
Private Sector Credit m/m

NZD: No Data Today

JPY:
Household Spending y/y, Tokyo Core CPI y/y, Prelim Industrial Production m/m

GBP: Nationwide HPI m/m

EUR:
German Retail Sales m/m, CPI Flash Estimate y/y, Unemployment Rate

USD:
Chicago PMI, Revised UoM Consumer Sentiment, Fed Chairman Bernanke Speaks, Factory orders m/m,