Australian Dollar: The Australian Dollar was supported yesterday by firmer commodity prices and a return to risk after last week's co-ordinated G7 intervention to curtail the surging Japanese Yen.

In the absence of any local economic data for the entire week, moves to the upside are expected to be limited as investors are keeping a close eye on developments in Libya, Bahrain and Yemen.

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There are renewed concerns that anti-government protests may spread to other Arab countries, disrupting oil supplies and reducing demand for assets and currencies linked to growth such as the Aussie. Meanwhile, the currency opens today at 1.0090 against the greenback.

We expect a range today of 1.0070 - 1.0135

New Zealand Dollar: Traders were content to play the ranges during yesterday's Asian session between a low of 0.7330 and a high of 0.7360 in the lead-up to key economic data releases this week. The currency opens higher today against the greenback at 0.7400. New Zealand's fourth quarter current account balance is scheduled for release this morning followed by growth data tomorrow which is expected to show a rise of 0.2 per cent for the final quarter of 2011. Meanwhile, the kiwi continues to claw its way back from multi-decade lows against the Australian Dollar and opens to at 0.7320.

We expect a range today of 0.7330 - 0.7430

Great British Pound: Interest rate speculation re-surfaced overnight taking the pound to a fifteen-month high of 1.6400 against the greenback. Sterling opens at 1.6370 today after inflation data announced on Tuesday showed consumer prices rose 4.4 per cent in February from a year earlier. The figure was above economists' forecasts and has the market building in a rate rise of 25 basis points by July. Meanwhile, the pound opens lower against both the Australian Dollar (1.6190) and the New Zealand Dollar (2.2090).

We expect a range today of 1.6150 - 1.6240

Majors: The Euro touched fresh five-month highs against the greenback overnight at 1.4247 after an ECB board member reiterated that "strong vigilance" is required to keep a lid on inflation. However, the 17-nation currency was sold down to a low of 1.4175 as investor concern re-surfaced that European Union leaders will struggle to find a permanent solution to region's debt crisis. The renewed fears come amid rising yields on Irish government debt securities and speculation that Portugal may ask for EU assistance as early as tomorrow if they are unable to proceed with proposed budget cuts. Meanwhile, the big dollar opens at 80.84 against the Japanese Yen.

Data releases

AUD: No data today

NZD: Current account balance, Q4

JPY: No data today

GBP: Bank of England minutes

EUR: Euro zone consumer confidence, March

USD: New home sales, Feb

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