Australian Dollar
The Australian dollar surged to its highest level in over month last week after the US Federal Reserve announced a fresh stimulus package, designed to give the world’s largest economy a boost. With the Central Bank spending US 40 Billion to buy mortgage backed securities markets finally received the increase in liquidity they have been longing for. Trading as high as 1.0624 against its US Counterpart it does appear the initial peak was slightly over done with the Australian dollar opening this morning at 1.0554. On the outlook this week the Reserve Bank of Australia are expected to release the minutes from their most recent meeting tomorrow after they left the official cash rate unchanged at 3.5 percent

We expect a range today of 1.0510 – 1.0580

New Zealand Dollar
Despite the significant positives for the New Zealand dollar last week, the kiwi opens this morning overall lower compared to the highs in excess of the 0.8350 mark witnessed intraday on Friday. Losing around half of one cent against its US Counterpart, demand for the riskier back asset was dampened after Egan-Jones Ratings cut the credit rating of the US, stating the fresh bout of stimulus measures from the Fed may in the longer-run hurt the world’s largest economy. Keeping in mind the general uptrend appears still intact the New Zealand dollar opens this morning clinging to the 83 US Cents mark.

We expect a range today of 0.8260 – 0.8330

Great British Pound:
Markets continued to show signs of good behaviour on Friday, still well supported by the goodies both the ECB and the Fed have recently provided. Given the spot light has been so firmly fixed on the actions of both Central Banks its little surprise to see investors lapping it up whilst cheaper funding is available. Powering through resistance levels around the 1.6150 mark against the Greenback the Sterling did briefly touch highs of 1.6255 before opening around 70 basis points stronger this morning at 1.6214. Meanwhile on the cross the Sterling opens stronger against both the Aussie (1.5360) and the Kiwi (1.9550)

We expect a range today of 1.5320 – 1.5400

Majors:
Asian markets are expected to open stronger this morning after Indexes around the globe surged higher last week following the US Fed’s announcement to ramp up support for the world’s largest economy through buying $40 Billion a month in mortgage debt until the labour market improves whist also extending their pledge to maintain interest rates at near-zero levels until mid 2015. With such measures designed specifically at improving labour market conditions, the market of late has become almost obsessed with talks of stimulus with a shift in focus likely to eventuate once the dust settles on the Central Banks most recent form of artificial sweetener. In other happenings on Friday US Retail Sales came in above expectation, increasing by 0.9 percent in August whilst US Consumer Sentiment also un-expectably rose in early September to its highest level in four months. Continuing its recent appreciation against a broadly weaker Greenback the Euro after trading between a 24 hour range of (1.2979 - 1.3168) against its US Counterpart opens this morning noticeably stronger at 1.3129.

Data releases

AUD:
New Motor Vehicle Sales m/m

NZD: Westpac Consumer Sentiment

JPY:
Bank Holiday

GBP: Bank Holiday

EUR:
Current Account

USD:
Empire State Manufacturing Index