Australian Dollar: Volatility continues across currency markets and the Aussie is caught up in the maelstrom with a US2-cent range over the last 24 hours and a low just beneath parity. The unit dipped beneath 1.0100 around lunchtime yesterday after the National Australia Bank survey of business conditions index dropped to its lowest level in more than a year. The Aussie recovered somewhat and reached a high of 1.0172 but succumbed to a third-straight session of renewed greenback strength and moved steadily lower towards 0.9997. The Aussie hovers around parity this morning but remains largely unchanged against the Euro (0.7270) and the pound (0.6272).

We expect a range today of 0.9960 - 1.0100

New Zealand Dollar: The New Zealand Dollar opens sharply lower this morning at 0.7766 as the greenback strengthened for a third consecutive session. With the kiwi hitting multi-year highs around US80 cents in recent days, talk of intervention had surfaced. However, this was 'nipped in the bud' by Prime Minister John Key who says New Zealand and its central bank are effectively powerless when it comes to checking the strength of the currency. Meanwhile, the kiwi is marginally higher against its Australian counterpart at 0.7740.

We expect a range today of 0.7720 - 0.7820

Great British Pound: The pound has fallen overnight against both the greenback (1.5970) and the Euro (0.8615) ahead of tomorrow's important inflation data. The pound rose earlier in the session to a high of 1.6183 after a report showed manufacturing expanded for a fifth straight month September. However, greenback strength across a basket of currencies and unconfirmed reports that tomorrow's inflation data had been leaked the market pushed the pound to an overnight low of 1.5950. Meanwhile, the pound opens steady against both the Australian Dollar (1.5940) and the New Zealand Dollar (2.0550).

We expect a range today of 1.5920 - 1.6020

Majors: The big dollar continued its rebound overnight rising against the other major currencies amid fears surrounding the re-emergence of European sovereign debt concerns. U.S bond yields, the interest rate paid on long term securities, rallied with the rate on 30 year bond yields climbing to 4.26% which is the highest since June 4. This saw demand for the Greenback intensify especially against the Euro which opens in Asia this morning at 1.3775, 3.7% higher than last week's post QE2 announcement low of 1.4280. The move came despite an unexpected 1.5% rise in U.S Wholesale Inventories during the month of September which highlights the delays wholesalers are facing in selling goods and the sluggish nature of the North American economy. In Asia today the market is anticipating the release of Chinese Trade balance data with the surplus forecast to have grown a whopping 50% to 25.3 billion dollars before the focus shifts stateside this evening where, in stark contrast, the U.S Trade Deficit is expected to narrow to 45 billion dollars; highlighting the huge imbalance between the two nations which will be a topic of discussion at the G20 meeting this week. In other news Japanese exporters breathed a sigh of relief as the USD rally saw the JPY weaken from 80.50 to come within a whisker of 82.00 before opening this morning near the highs at 81.80.

Data releases

AUD: Consumer Confidence, Nov

NZD: RBNZ Financial Stability Report

JPY: Consumer Confidence Oct

GBP: Bank of England Quarterly inflation report

EUR: No data today

USD: Initial jobless claims, week ending Nov 6.

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