Australian Dollar: Yesterday's unemployment data seemingly provided the markets with nothing more than volatility as an extra 29,700 jobs were created in the last month, 9.5K above expectations, followed by the announcement of an unexpected increase in the actual unemployment rate to 5.4%. A very brief spike in the rate was observed, quickly followed by another fall below parity to find support at 0.9990. Recovering to pre-announcement levels the Aussie dollar saw out the Asian session trading primarily between 1.0010/1.0060. Risk aversion managed to grip investors during the European and American sessions with a bank holiday in the US redirecting the majority of attention to the Euro-Zone and their continuing troubles. Managing to remain above parity throughout London trading hours, The Australian dollar finally succumbed to the threshold and fell to lows of 0.9960. We open today around 0.9980 and after the excitement of the past few days and lack of local data due for release, we expect a quiet close to the week.

We expect a range today of 0.9940 - 1.0010

New Zealand Dollar: A minor increase in the Business NZ Manufacturing Index was not received positively by investors and the New Zealand dollar lost ground early on in the Asian session yesterday, falling below 78 cents to 0.7790. Once this support was found, a rally ensued and the Kiwi closed out the local session at daily highs of 0.7870. Also falling victim to offshore risk aversion, the commodity currency lost a full cent before recovering to open today hovering on the 78 cent handle. Yesterday's Aussie unemployment figures did see the New Zealand Dollar gain against the AUD rising from 0.7780 to 0.7830 and the majority of these gains were held onto throughout the night, opening today 0.7820.

We expect a range today of 0.7760 - 0.7840

Great British Pound: The Pound consolidated recent gains and tried to further these during Asian trade yesterday, testing highs near 1.6170 by the early hours of London. With lack of any local data some choppy, yet sideways trade continued before a flock to the safe-haven US Dollar caused Cable to fall below 1.61 and testing lows of 1.6080. Mild profit-taking has seen the Pound recover and open today just back above 1.6100. Investors will be watching closely this morning as the Nationwide Consumer Confidence Index is released, with surveyed economists expecting a 2 point increase to 55. Gaining some ground against the riskier currencies, Sterling opens higher today against the Australian Dollar at 1.6150 and against the New Zealand Dollar at 2.0640.

We expect a range today of 1.6080 - 1.6210

Majors: Despite the European Central Bank's Juergen Stark claiming the Euro to be stable and the Euro-zone nearing self-sustaining levels, the single currency for the region has fallen against 14 of its major counterparts overnight. From daily highs of 1.3820 against the Greenback, a one month low was reached almost 2 cents lower at 1.3640 and totalling almost a 6 cents drop since last Friday. Increasing risk aversion and renewed European debt woes have contributed to these losses, with Irish, Portuguese and Spanish bond yields soaring overnight. The Japanese Yen has also lost ground against the US Dollar as a quiet 24 hrs on the economic data front meant investors focused on risk sentiment. The Greenback has held above 82.00 throughout the past 24hrs and reached highs of 82.59 as we open today around 82.45. Investors will be watching the majors carefully leading up to close of trade for the week, as German GDP and US Consumer Sentiment are both due for release today.

Data releases

AUD: No data due for release

NZD: No data due for release

JPY: No data due for release

GBP: Nationwide Consumer Confidence

EUR: German Prelim GDP q/q; Euro-Zone Gross Domestic Product (QoQ); Industrial Production m/m

USD: UoM Consumer Sentiment

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