Australian Dollar: The Australian Dollar has held onto its recent gains and opens in Sydney today buying 101.40 US cents. Risk aversion has dissipated for the moment as investors speculate the Reserve Bank of Australia will leave rates on hold next month.

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The Aussie hit an overnight high of 1.0155 as base metals prices surged. Gold nudged record highs and is trading at US1,438/oz; copper rose 2 per cent and aluminium is at a 3-year high. With the Euro taking a tumble overnight on renewed sovereign debt concerns, the Aussie is stronger against the 17-nation unit today at 0.7180.

We expect a range today of 1.0090 - 1.0180

New Zealand Dollar: The New Zealand Dollar opens higher against the greenback today at 0.7420. The currency hit a low during the Asian session yesterday of 0.7375 after New Zealand's annual current account deficit shrank to NZ$4.38 billion for calendar year 2010 as foreign liabilities fell.

The move lower was short-lived and the kiwi climbed steadily and headed into the European session around US74 cents as the recovery from the recent seven-month lows continues. In offshore trade, the unit hit a high of 0.7432 on the back of stronger commodities and base metals prices. Meanwhile, the kiwi opens little-changed against the Australian Dollar at 0.7300.

We expect a range today of 0.7350 - 0.7440

Great British Pound: After touching 15-month highs above 1.6400 against the greenback yesterday, Pound Sterling has slumped dramatically after the release of the Bank of England March meeting minutes. The pound opens today at 1.6247 as policy-makers see "merit in waiting" before raising interest rates and to examine the effect of higher oil prices on the economy. Markets are now pricing in a rate hike in July at the earliest. Meanwhile, the pound opens sharply lower against both the Australian Dollar (1.6000) and the New Zealand Dollar (2.1850).

We expect a range today of 1.5940 - 1.6035

Majors: The Euro (1.4100) moved lower overnight as sovereign debt concerns weighed on the minds of investors. At time of writing, leaders in Portugal are debating fresh austerity measures that may bring down the minority government and force t he nation into an early election. The 17-nation currency has retreated from 4-month highs on reports overnight that the expansion of the European Financial Stability Fund (EFSF) will not be decided until June. Markets were looking at the EFSF being in place by now and the renewed uncertainty is likely to weigh on the currency near-term. Meanwhile, the greenback opens steady against the Japanese Yen at 80.80.

Data releases

AUD: No data today

NZD: GDP, Q4

JPY: Merchandise Trade Balance, Feb

GBP: Retail Sales, Feb

EUR: Euro Zone Purchasing Managers Index, March

USD: Durable goods orders, Feb

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