Australian Dollar: Stronger-than-anticipated wages growth in Australia helped to push the currency back over parity against the greenback yesterday. The wage cost index climbed 1.0 per cent last quarter, for an annualised measure of 3.9 per cent - up from 3.5 per cent at the end of the previous quarter.

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The Reserve Bank of Australia is known to be concerned about wages growth which has interest rate markets and analysts pricing in at least one rate hike before year-end. The Aussie hit an intraday high of 1.0030. During the offshore session risk aversion weighed on equity markets and currencies linked to growth pushing the Aussie down to 0.9981 during late New York trade ahead of today's opening level of 1.0010.

We expect a range today of 0.9960 - 1.0050

New Zealand Dollar: The New Zealand Dollar hit fresh two-month lows around the US74.40 area during yesterday's domestic session as impact on financial markets from the devastating Christchurch earthquake was still being felt. The kiwi rallied quite strongly from this level and threatened to break through US75 cents on more than one occasion before entering the European session trading at 0.7480. In the absence of any key economic releases this week in New Zealand, movements in the currency are also being influenced by risk-aversion amid the growing political tensions in the Middle-East and North Africa. The kiwi opens on Thursday at 0.7435 against the greenback and at a fresh two-month low against the Australian Dollar of 0.7425.

We expect a range today of 0.7425 - 0.7500

Great British Pound: Pound Sterling (1.6190) moved higher overnight on speculation interest rates may need to rise sooner than expected. The minutes of the Bank of England February meeting revealed a third member of the central bank voted to raise rates to curb consumer-price growth which accelerated to 4 per cent last month. During trade on Wednesday, the pound hit a three-week high of 1.6273. Meanwhile, the pound opens higher against both the Australian Dollar (1.6180) and the New Zealand Dollar (2.1760).

We expect a range today of 1.6150 - 1.6220

Majors: Interest rate speculation pushed the Euro (1.3735) to a three-week high against the greenback at 1.3785 after European Central Bank (ECB) member Yves Mersch told reporters yesterday that policy-makers will "inevitably" have to "rebalance our policy stance" as the 17-nation Euro-zone economy strengthens. Inflation concerns across the globe are growing as the price of oil surges towards US$100/barrel amid continuing political unrest in North Africa. Libya is the world's 18th- largest producer of oil. Meanwhile, the Japanese Yen opens little-changed at 82.45 against the US Dollar after data yesterday revealed Japan's exports increased at the slowest pace since November 2009 to record a trade deficit in January.

Data releases

AUD: No data today

NZD: No data today

JPY: No data today

GBP: No data today

EUR: Euro zone consumer confidence, Feb

USD: New Home sales; Durable goods orders, Jan

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