Australian Dollar
It has been a steady rise for the Australian dollar over the past 24 hours with a slight change in risk sentiment over the early parts of this week favouring the higher-yielding asset. Appreciating to a late afternoon high of 1.0439 against its US Counterpart figures released locally showed the number of home loans made for owner occupiers rose by 0.9 percent in September. Whilst failing just short of what was expected the reading still remains a step in the right direction for a housing market holding firm. Failing to hold onto momentum as the Aussie approached the six-week highs witnessed last week of 1.0480, Greece still remains a major source of uncertainty for the market as does the US Fiscal Cliff which is set to dominate headlines through year’s end. Meanwhile this morning the Australian dollar opens a third of cent stronger at 1.0428.

We expect a range today of 1.0390 – 1.0450

New Zealand Dollar
The New Zealand dollar has enjoyed a positive start to the week holding onto gains nicely following the release of stronger than expected trade numbers in China over the weekend. Reaching highs of 0.8185 against its US Counterpart a quieter than usual overnight session did eventuate with the North American banking holiday observing Remembrance Day. Whilst global risk sentiment did receive a boost on news that Greece will receive a two year extension to meet budget targets, the pill which is austerity, is becoming increasing hard to swallow given an already sick economy. Opening this morning at a rate of 0.8179, locally the market’s attention will turn to Retail Sales figures which are scheduled to be released tomorrow ahead of ongoing chatter concerning the US Fiscal Cliff.

We expect a range today of 0.8150 – 0.8200

Great British Pound:
In what has been a very quiet session for the Great British Pound, British Stocks were also little changed near a six week low. Trading between a 24 hour range of (1.5863 – 1.5913) against its US Counterpart Euro-group meetings in Brussels as well a US Public Holliday kept a lid on any left-field movements as the Sterling opens flat this morning at 1.5880. On the outlook this week investors will be eyeing inflationary data which is expected to be released this evening with any increase in prices likely to be associated with the higher costs of energy and food. Meanwhile on the cross this morning the Great British Pound is weaker against both the Aussie (1.5225) and the Kiwi (1.9411)

We expect a range today of 1.5190 – 1.5250

Majors:
Following the worst weekly drop since June, US Stocks fluctuated overnight as investors awaited budgetary talks in Washington. In what is being headlined as the fiscal future of the world’s largest economy, the demand for a solution is high and rightly so. With the general consensus agreeing that everybody would be better off if Congress acted well before the market demanded it, it would be nice to think that some lessons have be learnt from the mistakes of Europe. Reaching a two- month low of 1.2696 against its US Counterpart the Euro opens this morning clinging to the 1.27 handle as Policy Makers in Brussels draft a report outlining that Greece may require a further two years and a further 15 billion Euro’s to meet budget targets. With so many cards still not even on the table the weeks ahead are looking increasingly volatile. Meanwhile this morning the Greenback opens weaker against the Japanese Yen at a rate of 79.440

Data releases

AUD:
No Data Today

NZD: FPI m/m

JPY:
Revised Industrial Production m/m

GBP: CPI y/y, PPI Input m/m, RPI y/y, BOE Inflation Letter

EUR:
ECONFIN Meetings, German ZEW Economic Sentiment, ZEW Economic Sentiment

USD:
Federal budget balance