Australian Dollar: Domestic consumer confidence data for February came in at 1.9% yesterday which was a major improvement on the January figure (negative 5.7%) however, the Aussie retreated marginally during the Asian trading session touching US101.30 cents. The currency is being supported by improved global economic sentiment, high domestic interest rates and stronger commodity prices.

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Gold spent most of the day trading near three-week highs at US1,363.00/oz. During the offshore session, the unit moved between a high of 1.0137 down to a low of 1.0090. Local jobs data is scheduled for release this morning with unemployment tipped to remain steady at 5 per cent. A figure less than this and the creation of new positions above 25,000 would see the AUD move back towards 1.0200. The Aussie opens at 1.0090 today.

We expect a range today of 1.0075 - 1.0190

New Zealand Dollar: The kiwi, which opens at 0.7700 today against the greenback, took a mini-tumble during Wednesday's domestic trading session after Finance Minister Bill English confirmed the government's concern about a double dip recession. The currency dropped 40 pips in fairly quick time to an intraday low of 0.7710.

The economy shrank 0.2 per cent in the September quarter of 2010 and final quarter figures are scheduled for release on March 24. During overnight trade, the kiwi moved in a similar pattern between a high of 0.7745 down to a low of 0.7705. The kiwi opens little-changed against the Australian Dollar today at 0.7625.

We expect a range today of 0.7685 - 0.7770

Great British Pound: Pound Sterling opens marginally higher today against the greenback at 1.6090 as traders exercised caution ahead of tonight's Bank of England monetary policy meeting. Whilst rates are likely to remain on hold at 0.5 per cent, the chorus for an increase is getting louder amid above-target consumer price growth.

Earlier in the session the pound hit a low of 1.6032 as data showed the UK trade deficit unexpectedly widened to 9.25 billion pounds in December from a revised 8.46 billion pounds the previous month. Meanwhile, the pound is higher against both the Australian Dollar (1.5930) and the New Zealand Dollar (2.0850).

We expect a range today of 1.5875 - 1.5960

Majors: The big dollar weakened against the Euro (1.3716) and the Japanese Yen (82.30) after U.S. Federal Reserve Chairman Ben Bernanke hinted the central bank would be slow to respond with any tightening of monetary conditions. In his testimony to the House Budget Committee, Mr Bernanke said "although the rate of economic activity appears likely to pick up this year, the unemployment rate will probably remain elevated for some time".

The Chairman also noted that output growth is "likely to be moderate for a while". The U.S. Federal Reserve has kept its benchmark interest rate at zero - 0.25 per cent since December 2008.

Data releases

AUD: Unemployment rate, Jan

NZD: No data today

JPY: Machine Orders, Dec

GBP: Bank of England rate decision

EUR: French manufacturing & Industrial production, Dec

USD: Initial jobless claims, Feb 5.