Australian Dollar:
It was a familiar story for the Australian dollar yesterday which has once again failed to break free from recent ranges. Falling to intraday lows of 1.0426 against its US Counterpart the total amount of construction work rose by a disappointing 1.7 percent in the third quarter of this year, well below the expected rate of 2.4%. Despite its slow start optimism that US lawmakers are closer to a debt agreement sparked a slight fall in the Greenback and a move towards riskier dominated assets. Touching late session highs of 1.0478 the Australian dollar opens stronger this morning close to these levels. On the horizon today a positive Capital Expenditure read due to be released at 11:30am this morning has the potential to trigger a move higher towards the 1.05 mark.

We expect a range today of 1.0440 – 1.0490

New Zealand Dollar
The New Zealand dollar has firmed against its US Counterpart overnight after comments from US House Speaker John Boehner sparked renewed optimism that Congressman will be able to successfully avoid the fiscal cliff which would see US $607 billion worth of automatic tax hikes and spending cuts enacted. After touching lows of 0.8190 domestically the Kiwi was in high demand as North American markets entered the frame boosted nicely by a move away from the world’s reserve currency. This morning sees the New Zealand dollar open stronger currently buying 82.35 US Cents as investors look towards the release of a Business Confidence reading due out shortly.

We expect a range today of 0.8210 – 0.8260

Great British Pound:
In what was a generally uninspiring session for the Great British Pound, local data released yesterday only added to the lack of direction across markets. Whilst Net Lending to individuals decreased in the month of October Mortgage approvals showed signs of strength. Trading as low as 1.5960 against its US Counterpart renewed optimism that the US Fiscal Cliff will be avoided helped the Sterling recover as it opens battling to keep it heads above the 1.60 mark. Meanwhile against the Aussie (1.9436) and the Kiwi (1.5280) the Sterling opens noticeably lower.

We expect a range today of 1.5250 – 1.5310

Majors:
For a second consecutive day the risk button remained on across markets as witnessed by a stronger Australian, Canadian and New Zealand dollar. Amongst signs of stronger global growth the main trigger overnight came after comments from US House of Representative Speaker and Senior Republican John Boehner signalling that the two opposing political parties are on track to settle on a debt agreement before Christmas. With US Fiscal Cliff talks likely to remain the key headline over the coming weeks in a worrying sign for the world’s largest economy the sale of new homes unexpectedly fell in October by 0.3 percent. Jumping across to Europe and the initial optimism which flowed from Greece’s most recent bailout approval is starting to run dry as witnessed by equity markets which added a mere 0.1 percent. On the currency front the numbers looked even less impressive given a slight fall in the Euro. After trading between a 24 hour range of (1.2878 – 1.2944) against its US Counterpart the Shared Unit opens lower this morning at 1.2930.

Data releases

AUD:
HIA New Home Sales m/m, Private Capital expenditure q/q

NZD: NBNZ Business Confidence

JPY:
Retail Sales y/y

GBP: Nationwide HPI m/m, BOE Governor King Speaks, CBI Realized sales, BOE Financial Stability Report

EUR:
Italian 10-y bond-auction

USD:
No data today