Australian Dollar
For the third time this year the Reserve Bank of Australia has downgraded the Nation’s economic prospects sighting weaker export prices, a stubbornly high dollar as well as a budget surplus which is taking its toll on growth. Whilst softer Chinese demand and the US Fiscal cliff also remain a major concern, the Central Bank said it now expects the domestic economy to grow between 2.25 percent and 3.25 percent in 2013 down from its February forecast of 4 percent growth. Driving the Australian dollar lower to 1.0358 against its US Counterpart better than expected data releases from China in the form of Industrial Production and Retail Sales were not enough to return the higher yielding unit back into positive territory with risk sentiment being substantially hampered over the looming US Fiscal Cliff which once again looks set to engulf global markets. Meanwhile this morning the Australian dollar opens weaker currently swapping hands at a rate of 1.0382

We expect a range today of 1.0350 – 1.0400

New Zealand Dollar
In what was viewed as positive news across markets on Friday, trade data released out of China showed export growth had accelerated in October by 11.6 percent. Whilst consumer spending, investment and industrial production also showed signs of life amid softer than expected inflation the figures do paint a picture of a stabilising economy still on track to achieve annualised growth of 7.5 precent. Despite intraday highs of 0.8176 against its US Counterpart the New Zealand dollar was broadly weaker overnight Friday with concerns over Greece’s finances doubled with an approaching fiscal cliff in the US taking its toll on the Kiwi. Opening this morning at a rate of 0.8140, levels above the 0.8150 mark still appear a little excessive.

We expect a range today of 0.8110 – 0.8170

Great British Pound:
A day after the BOE unanimously decided to keep the official cash rate and the level of asset purchases unchanged Governor Mervyn King has announced that income from gilts will be transferred to treasury, essentially reducing the stock of debt. In what may be described as an alternate form of monetary easing the Sterling fell and fell hard for much Friday. Whilst also hampered by concerns over the US fiscal cliff the Great British Pound crumbled through previous support at 1.6000 reaching lows of 1.5886. Meanwhile this morning ahead of key inflationary data due for release tomorrow the Sterling opens weaker against the Greenback (1.5894), the Aussie (1.5307) and the Kiwi (1.9509)

We expect a range today of 1.5470 – 1.5530

Majors:
Whilst US Stocks finished in positive territory on Friday comments made by President Barack Obama and House of Representative speaker John Boehner have left investors little hope that the two opposing sides will be able to meet an agreement which would effectively see the much talked about “fiscal cliff” avoided. In the absence of an agreement before January lawmakers would automatically enact $607 billion in automatic spending cuts and tax increases which would essentially result in a substantial hit to US growth prospects. Whilst markets were generally pleased with several positive reads throughout China as well consumer sentiment in the US which hit a five-year high the state of European finances remains an ongoing concern. Tracking to lows of 1.2689 against its US Counterpart European finance chiefs continue to work on a program set to maintain Greek solvency following parliamentary approval of austerity measures needed to receive further aid. Meanwhile this morning the shared-unit is broadly weaker clinging to a rate of 1.2710 against the Greenback

Data releases

AUD:
Home Loans m/m, NAB Business Confidence

NZD: No Data Today

JPY:
Prelim GDP q/q, BOJ Gov Shirakawa Speaks,

GBP: No Data Today

EUR:
Eurogroup Meetings

USD:
No Data Today