Australian Dollar: The Aussie opens lower today at 0.9975 after another session of risk aversion on speculation political unrest in the Middle East and North Africa will intensify. During yesterday's domestic session, the unit fell steadily towards parity with the greenback and was further dented by economic data which revealed a slump in business confidence.

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The National Australia Bank survey for the final quarter of 2010 was down 4 index points - and this was before the Queensland floods. During the offshore session, our currency continued its run lower hitting 0.9972. The Aussie is weaker against the pound (0.6175) and the Euro (0.7300) and higher against the New Zealand Dollar (1.3340).

We expect a range today of 0.9920 - 1.0010

New Zealand Dollar: The New Zealand Dollar (0.7460) fell sharply during local trade yesterday after a catastrophic earthquake shook Christchurch. With the New Zealand economy already soft, traders sold down the currency which lost over one US cent in very quick fashion, hitting an intraday low of 0.7500. The unit is also under pressure amid further risk aversion on speculation political unrest in the Middle East and North Africa will intensify. During the offshore session the kiwi sunk to a two-month low of 0.7454. Meanwhile, the kiwi has also lost ground against the Australian Dollar with the cross rate opening today at 0.7480.

We expect a range today of 0.7420 - 0.7515

Great British Pound: The pound (1.6140) has fallen overnight against several of its major counterparts as political instability in the Middle-East and North Africa dampened risk appetite. In overnight trade, the pound moved as low as 1.6100, the steepest intraday slide in over a week. Investor focus will switch back to the local economy tonight when the Bank of England releases the minutes from its February 10 meeting when interest rates were left on hold at 0.5 per cent. Meanwhile, the pound opens sharply higher against both the Australian Dollar (1.6175) and the New Zealand Dollar (2.1590).

We expect a range today of 1.6120 - 1.6220

Majors: Overnight the Greenback, Yen and Swiss Franc (0.9380) have all been the beneficiary of safe-haven demand as traders eschew currencies linked to risk amid escalating political turmoil in the Middle-East and North Africa. The 17-nation Euro hit an overnight low of 1.3524 however the losses were very short-lived on speculation the European Central Bank may toughen its stance on inflation as early as next week. Also assisting the greenback overnight was the release of the Conference Board's index of consumer sentiment which increased to 70.4 in February - a three-year high - from 64.8 the previous month. Meanwhile, the greenback opens lower against the Japanese Yen at 82.68.

Data releases

AUD: Wage cost index, Q4

NZD: No data today

JPY: No data today

GBP: Bank of England minutes

EUR: Italian CPI, Jan

USD: Existing home sales, Jan

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