Australian Dollar
The Aussie failed to recapture earlier losses on Thursday managing an intraday high of 1.0090 on growing concerns around the Euro zone. Since the European Central Bank announced a blow-out in its balance sheet to EUR2.73 trillion on Wednesday, the greenback has strengthened across the board as market participants eschew currencies linked to risk. During the offshore session the unit moved to a high of 1.0140 ahead of this morning’s opening level of 1.0120. Meanwhile, the Aussie remains near all-time highs against the Euro at 0.7800.

We expect a range today of 1.0080 to 1.0160

New Zealand Dollar
Euro zone concerns continue to drive movements in currencies linked to global growth and the kiwi is not escaping unscathed. Throughout local trade on Thursday, the kiwi moved to a low of 0.7650 before recovering somewhat, entering the European trading session around the US77-cent area. Greenback strength across the board is also limiting any upside moves for the currency. During offshore action the kiwi moved to a high of 0.7717 ahead of this morning’s opening level of 0.7700.

We expect a range today of 0.7675 to 0.7725

Great Britain Pound
The Pound Sterling continued its slide in Asian trade yesterday as traders continue to forecast stagnant to negative growth in the UK in 2012. The Pound fell during Thursday’s US session to a 3-month low of 1.5360 before stabilising around the 1.5390 mark. With many market participants still away on an extended Christmas break, volatility still continues despite any lack of top tier data. Against the Australian and New Zealand Dollar, the Pound Sterling is changing hands at 1.5180 and 1.9960 respectively.

We expect a range today of 1.5130 to 1.5230

Majors
The Euro (1.2940) fell to fresh 15-month lows against the dollar hitting an overnight nadir of 1.2857 as Italian bond yields rose. Investors sold the 17-nation currency after Italy sold less than its maximum target at an overnight debt auction, highlighting funding difficulties and bringing into sharp focus the region’s sovereign-debt crisis. Greenback strength is also driving currency movements at present as economic data from the world’s largest economy continues to show signs of improvement. Weekly jobless claims in the US for the week ending December 24 dropped to 375,000 – the lowest in over three years. Overnight, the greenback trod a familiar path against the Japanese Yen moving between a low of 77.63 and a high of 77.97.

Data releases

AUD: No data today

NZD: No data today

JPY: Purchasing Manager Index, Dec

GBP: No data today

EUR:, German retail sales, Nov; German CPI, Dec

USD: No data today