Australian Dollar
The Australian dollar retreated yesterday and after hefty gains over the past week the higher-yielding asset appears a little heavy around the 1.05 mark against its US Counterpart. Dropping as low as 1.0385, interim support appears strong at 1.04 with the overall mood resembling one of caution and concern across markets for much of the past 24 hours. Looking vulnerable at this morning’s opening rate of 1.0422 concerns that European Leaders are not doing enough to avoid another potential debt flair up throughout the 17-nation bloc has driven direction in the early parts of this week with the Australian dollar set for further southward dips should investors not receive the assistance that they desire. Looking ahead for the Australian dollar and already there has been some chatter of the RBA making a downward revision in the underlying cash rate when they met next week, all of which will further weaken demand for Australia’s currency.

We expect a range today of 1.0380 – 1.0460

New Zealand Dollar
The New Zealand dollar suffered at the hands of its US Counterpart yesterday falling noticeably as European and US markets opened overnight. Given Asian stocks which offered minimal inspiration the higher yielding asset was sold down to an eventual low of 0.8183 with Spain appearing to be the new epicentre of debt following in the footsteps of Portugal, Greece and Ireland who have all sort financial assistance of late. Continued disagreement among euro leaders and the underlying very poor prospects of economic growth offers little hope in the short-term for a currency whose demand is so greatly influenced by underlying risk sentiment. Meanwhile this morning the New Zealand dollar opens half a cent weaker as it currently buys 82.27 US Cents

We expect a range today of 0.8180 – 0.8250

Great British Pound:
Similar to the fate of a handful of major units the Great British Pound has fallen against its US Counterpart in the early parts of this week. Touching lows of 1.6181 overnight, the euphoria surrounding stimulus measures taken recently by the ECB, The US Fed and the BOJ has well and truly diminished with the focus more likely to remain firmly on the progress of a Banking Union in Europe, a potential bailout in Spain as well as the failure of the Greeks to meet austerity commitments. With plenty of forces at play the general consensus still remains that ranges should remain firm around the big figure of 1.6200 against the Greenback. Meanwhile on the cross-rates this morning the Sterling opens stronger against the Aussie (1.5557) and the Kiwi (1.9705)

We expect a range today of 1.5520 – 1.5600

Majors:
There has been a general feeling across markets in the early parts of this week that European concerns are once again set to hog the attention of investor’s minds given the lack of urgency shown by European Leaders. Declining to a one week low against its US Counterpart the Euro briefly touched 1.2890 before recovering somewhat this morning to open weaker by around half cent at 1.2928. With support kicking in at 1.29 The Ifo Business Climate Index for German Industry and Trade which was released overnight unexpectedly fell in September, dropping for a fifth straight month. Whilst in Germany, in a further sign that concerns are bubbling to the surface Germany’s governing coalition has showed growing exasperation with Spain, pleading that they must spell out exactly what the situation is given the negative implications should they drag their feet through a possible aid bid. Meanwhile in unrelated happenings the Greenback has weakened against the Japanese Yen overnight opening weaker this morning at 77.831

Data releases

AUD:
RBA Financial Stability Review

NZD: No data today

JPY:
CSPI y/y

GBP: BBA Mortgage Approvals

EUR:
Gfk German Consumer Climate

USD:
CB Consumer Confidence