Australian Dollar: The Aussie spent most of yesterday recovering from the previous session's losses owing to the military flare-up on the Korean Peninsula. The unit rose steadily during the Asian time zone from a low of 0.9720 up to US98 cents. Risk aversion has been a persistent theme this week in light of continued jitters over Europes efforts to contain the debt crisis currently gripping Spain and Portugal. In overnight trade however, the Aussie moved to a high of 0.9852 after a series of stronger-than-expected economic reports released in the United States overnight encouraged some investors to unwind their long greenback positions. The Aussie opens at 0.9809 this morning.

We expect a range today of 0.9780 - 0.9880

New Zealand Dollar: In the absence of any market-moving economic data the New Zealand dollar followed the Aussie higher during yesterdays local session to an intraday peak of 0.7630. The unit has been battered this week on several fronts including a revised foreign currency sovereign credit rating and risk aversion amid the military flare-up on the Korean Peninsula. During the offshore session, the kiwi moved to a high of 0.7643 after a series of stronger-than-expected economic reports released in the United States overnight encouraged some investors to unwind their long greenback positions. Meanwhile, the kiwi opens sharply weaker against the Australian Dollar today at 0.7750.

We expect a range today of 0.7580 - 0.7640

Great British Pound: The pound opens lower against the US Dollar at 1.5750 and stronger against the Euro (0.8447) as economic data revealed the UK economy grew at 0.8 per cent in the third quarter. Sterling is likely to remain under pressure against the greenback over the near-term as the UK government's proposed 7-billion pound assistance loan to Ireland exposes risks to British banks who may lose money on their Irish activities. Meanwhile, the pound opens lower against both the Australian Dollar (1.6050) and the New Zealand Dollar (2.0700).

We expect a range today of 1.6000 - 1.6080

Majors: The US Dollar fell marginally against several currencies overnight as better-than-expected economic data encouraged some investors to take on riskier assets in the form of the Australian Dollar and the Brazilian Real. Initial jobless claims for the week ending November 20 fell to 407,000 - well below expectations and the lowest level since July 2008. Household purchases in the US rose 0.4 per cent in October whilst the University of Michigan's final index of consumer sentiment for November increased t o 71.6, the highest level since June. The 16-nation Euro currency opens lower today at 1.3300 whilst the greenback opens marginally higher against the Japanese Yen at 83.60.

Data releases

AUD: Private capital expenditure, Q3

NZD: No data today

JPY: Merchandise Trade Balance, Oct

GBP: No data today

EUR: CPI, Nov

USD: Markets closed

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