Australian Dollar: After gaining considerable momentum throughout the domestic session yesterday the Australian Dollar traded as high as 0.9878 following strong gains on global equity markets as well as better than expected economic data out of the US. With US Growth figures of 1.3 percent providing a solid platform for global risk sentiment the Aussie Dollars early strength did prove to be relatively short-lived with a late session self-off seeing the Currency open this morning relatively unchanged at a rate of 0.9776 against its US Counterpart. Looking ahead today Private Sector Credit Figures are due for release locally at 11:30am this with broader European new flows likely to set short-term direction for global risk-appetite.

We expect a range today of 0.9710 – 0.9850

New Zealand Dollar: The New Zealand Dollar lost ground yesterday after Fitch Ratings Services downgraded the Nations Credit Rating by one step to AA, down from its previous AA+ Rating. While Fitch said the Nations outlook remains stable, it was the countries above average external debt levels which warranted the downgrade. Following the announcement the New Zealand Dollar was to sold by investors reaching an eventual low of 0.7650 against its US Counterpart, losing one and half cents from the its 24 hour high seen around the 0.7820 Level. Meanwhile this morning the New Zealand Dollar opens lower against the Greenback at a rate of 0.7706.

We expect a range today of 0.7670 – 0.7790

Great British Pound: The Great British Pound opens stronger against its US Counterpart this morning at a rate of 1.5619, following a report which showed UK Mortgage approvals rose in August to the highest level seen in 20 Months. With record low interest rates helping to provide support to the housing market, the Great British Pound also benefitted from stronger than expected US Economic Data as well as quieter news flows out of broader Europe. Meanwhile this morning the Great British Pound opens stronger also against the Australian Dollar (1.5964) and the New Zealand Dollar (2.0264).

We expect a range today of 1.5910 -1.6020

Majors: US Stocks Rose with the S&P 500 gaining 0.8 percent following two excellent sets of number out of the US overnight. Driving markets into positive territory yesterday US Gross Domestic Product exceeded expectation as the US economy grew at an estimated pace of 1.3 percent for the second quarter against a forecasted figure of 1.2 Percent. In further positive news out the US Unemployment Claims also unexpectedly fell, fuelling optimism that the US economy is finally starting to overcome its recent stagnation. Off the back of such results the US Currency advanced against the Japanese Yen, opening stronger this morning at rate of 76.784. With strong US Data providing a surprise boost to global markets, the decision by German Lawmakers to vote on an expanded European bailout fund had minimum impact. In what proved to be a relatively subdued session in comparison to the recent volatilities the EURO traded between a 24 hour range of (1.3519 – 1.3678) as it opens slightly stronger against its US Counterpart at a rate of 1.3587.

Data releases

AUD: Private Sector Credit

NZD; Building Consents, NBNZ Business Confidence

JPY: Manufacturing PMI, Household Spending y/y, National Core CPI y/y, Unemployment Rate, Prelim Industrial Production, Housing Starts

GBP: Gfk Consumer Confidence

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

USD: Person spending m/m, Chicago PMI, Revised UoM Consumer Sentiment, Revised UoM Inflation Expectations