Australian Dollar: The Australian Dollar traded lower for much of yesterday as the Melbourne Institute Survey of Consumer Inflationary Expectations showed virtually no change. Throughout the Asian session yesterday the Australian Dollar traded as low as 1.0182 against its US Counterpart, the lowest level seen in a month.

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With inflationary expectations now within the Reserve Banks desired target range of between 2 -3 percent, the likelihood of a potential interest rate cut in the coming months has gained considerable momentum, with uncertainty surrounding global growth conditions impacting negatively on the Australian Dollar.

As the Nation’s Currency entered the offshore session, investors purchased the higher-yielding unit as improved news flows out of the Euro Zone triggered buy orders driving the Aussie Dollar to an overnight high of 1.0346. Meanwhile this morning the Australian Dollar opens higher at a rate of 1.0327 in what proved to be another volatile session.

We expect a range today of 1.0220 – 1.0400

New Zealand Dollar: As expected New Zealand''s Central Bank left the official benchmark cash rate unchanged yesterday at 2.50 percent. Following the announcement, the New Zealand Dollar was initially sold trading to a mid-afternoon low of 0.8119 against its US Counterpart.

With the accompanying statement out of the Nation’s Central Bank slightly more Dovish than previously heard, similar to the stance of several Central Banks throughout the world there appears no urgency to raise rates in coming months, as concerns over broader market stability remain a huge risk to the Nation’s economic activity.

As the Kiwi entered the offshore session it did however manage to pair some of its earlier losses, with news the European Central Bank will step-up funding for the regions banks, demand for riskier assets increased as the New Zealand Dollar traded as high as 0.8280 before falling off slightly to open relatively unchanged this morning at a rate of 82..32

We expect a range today of 0.8170 – 0.8280

Great British Pound: UK Stocks rallied yesterday for a third straight day as the Great British Pound benefitted from slightly improved news flows from its European neighbours.

With France and Germany both re-iterating that Greece will remain a member of the EURO, the Sterling traded to an overnight high of 1.5868 against its US Counterpart. In local happenings as expected UK Retail Sales shrunk by 0.2 percent for the month of August as consumers remain sceptical in regards to the strength of the Nation’s growth prospects.

With no local data due for release out of the UK this evening short-term direction for the Sterling is again expected to come from its European Neighbours with ECB President Jean-Claude Trichet due to speak from a Financial Forum this evening. Meanwhile this morning the Sterling opens stronger against the Greenback at a rate of 1.5796, whilst lower against the Australian Dollar at a rate of 1.5293

We expect a range today of 1.5230 -1.5350

Majors: US Stocks rallied overnight, for a fourth consecutive day with the S&P 500 Index gaining 1.7 percent. Driving Global Equity and Currency Markets higher overnight was an announcement outlining a coordinated relief program by The European Central Bank along with The US Federal Reserve to lend dollars to European Banks to help ensure short-term liquidity and functionability of money markets.

In what proved to be a significant Policy announcement the EURO Rallied yesterday trading as high as 1.3936 against its US Counterpart as it opens a full cent higher this morning at a rate of 1.3875, having gained considerable ground since the lows around the 1.35 Level seen earlier in the week.

Meanwhile in the US Overnight, in further signs the Nation’s economic growth remains just north of stagnant the market saw a relatively mixed bag of economic announcements. While the cost of living in the US increased more than forecast as shown by a CPI reading of 0.4 percent for the month of August, Unemployment claims also unexpectedly climbed by 11,000 to 428,000 in the week ended September 10. In what proved to an extremely busy session the Greenback remained relatively subdued as it opens fractionally higher against the Japanese Yen this morning at a rate of 76.668

Data releases

AUD: No Data Today

NZD; No Data Today

JPY: No Data Today

GBP: Chancellor Osborne Speak

EUR: Current Account, Italian Trade Balance, ECOFIN Meetings, Trade Balance, ECB President Trichet Speaks

USD: Prelim UoM Consumer Sentiment, Prelim UoM Inflation Expectations