Daily forex forecast

Australian Dollar :: Growth and inflation figures released from China supported their move to increase interest rates earlier this week. Chinese GDP expanded 9.6% for the previous quarter, exceeding expectations, while inflation accelerated at its fastest pace in 23mths at a rate of 3.6%. The Australian Dollar slid more than half a cent against the US Dollar heading towards the 0.9800 mark before recovering its losses offshore. Positive data out of Germany improved investor appetite for growth linked currencies with the Aussie tackling 0.9880 against the Greenback on several occasions overnight before tumbling to an overnight low of 0.9740. This morning the Australian Dollar opens lower at 0.9773 versus the US Dollar.

We expect a range today of 0.9710 - 0.9860

New Zealand Dollar :: According to the latest ANZ-Roy Morgan Consumer Confidence survey, New Zealand consumer confidence fell in October to a 14 month low. The index fell from 116.4 in September to 113.6 adding further signs of a sluggish economic recovery. Investors promptly sold off of the Kiwi easing the New Zealand Dollar from 0.7550 to an overnight low 0.7434 against the Greenback, a loss of more than 1.5%. The Kiwi weakened as economic data released today from Washington softened expectations of aggressive US Federal Reserve monetary policy easing next month with more than half of the Fed's 12 regions growing modestly. Today the Kiwi opens at 0.7450 against the US Dollar.

We expect a range today of 0.7400 - 0.7510

Great British Pound :: The Pound tumbled, testing recent daily lows, as the nation's economic data continues to deteriorate. British retail sales figures shocked, falling -0.2% from last month. Economist had expected sales figure to improve 0.4%. Mortgage approvals had also declined in line with expectations. The figures out of the UK increase the likelihood of further quantitative easing by the Bank of England as policy-makers express support for the move. This morning the Sterling opens buying 1.5708 US Dollars ahead of this week's G20 meeting. Meanwhile, the pound opens steady against the Australian Dollar at 1.6060.

We expect a range today of 1.6000 - 1.6100

Majors :: The Euro made a run for 1.4050 against the American Dollar offshore when news German flash manufacturing and services PMI had improved. Market expectations were for the indexes to print at 54.6 and 55.0 respectively. Growth in Germany remains strong in both sectors with manufacturing improving to 56.1 and services to 56.6. Flash figures for the Euro Zone revealed manufacturing expanded at a faster pace than services. The Euro could not hold its gains against the Greenback as investors flocked to US Dollar following comments from Brazil's Finance Minister ahead of the G20 meeting. Minister Guido Mantega said 'He [Geithner] assured me that the policy is not to weaken the dollar, but on the contrary, to strengthen it' and that they agreed to act jointly with the Group of 20 nations to find a solution for the dollar's depreciation.

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