Australian Dollar: The Aussie (0.9860) moved above US99 cents during domestic trade on Monday after some short-term relief was provided to markets with the announcement of the European Union's (EU) bailout plans for Ireland. The Aussie followed the Euro higher during yesterday's domestic session as the EU and International Monetary Fund combined to pledge a multi-year financial package to cover Ireland's fiscal needs and future capital requirements of its banking system. The gains were short-lived however and a bout of risk-aversion saw the Aussie come off and hit an overnight low of 0.9822. Meanwhile, the Aussie opens higher against the kiwi today at 1.2760 after ratings agency Standard and Poor's revised its outlook on New Zealand's foreign currency sovereign credit rating to negative from stable.

We expect a range today of 0.9820 - 0.9935

New Zealand Dollar: After steady gains throughout most of the domestic session towards a high of 0.7830, the kiwi took a US1 cent tumble as ratings agency Standard and Poor's revised its outlook on New Zealand's foreign currency sovereign credit rating to negative from stable. During the offshore session, the kiwi moved down to a low of 0.7693 due to another bout of risk aversion as the market digests the Irish sovereign debt bailout plans. The unit has recovered slightly opens today 0.7720. On the cross rates, the kiwi is also weaker and opens against the Australian Dollar at 0.7810.

We expect a range today of 0.7680 - 0.7755

Great British Pound: The pound opens weaker today at 1.5937 as risk aversion gripped currency markets prompting buying of the greenback as a haven. Despite the recent announcement of a combined EU/IMF bailout of Ireland, markets appear concerned the measures do not adequately address long term solvency issues. The local economic calendar is relatively light early this week with the exception of tomorrow's release of 3rd quarter economic growth data which most economists expect to come in around 0.8 per cent. Meanwhile, the pound is steady against the Australian Dollar (1.6165) and higher against the New Zealand Dollar (2.0630).

We expect a range today of 1.6120 - 1.6200

Majors: The Euro moved higher during Asian trade on Monday hitting an intraday zenith of 1.3785 after the European Union and International Monetary Fund combined to pledge a multi-year financial package to cover Ireland's fiscal needs and future capital requirements of its banking system. The gains were short-lived however and the 16-nation currency opens lower today at 1.3600 after Moody's Investor Services said it may lower Ireland's credit rating by more than one level. Market participants sold the Euro down to an intraday low of 1.3576 amid concerns the bailout package does not address long term solvency needs. Meanwhile, the greenback opens little-changed against the Japanese Yen at 83.23.

Data releases

AUD: No data today

NZD: RBNZ 2-year inflation expectation, Q4

JPY: No data today

GBP: No data today

EUR: German GDP, Q3; Euro Zone PMI, Nov

USD: GDP Q3; Existing home sales, Oct; Personal Consumption expenditure, Q3

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