Australian Dollar: The release yesterday of CPI (Consumer Price Index) sent the Australian Dollar down with the figure coming in for the quarter at 0.4% (compared with a forecast of 0.5%) and in doing so dampened any rate rise expectations in the near term by the Reserve Bank of Australia. The Australian Dollar fell from a high of 0.9975 to 0.9930 as traders trimmed their long AUD positions on the news. During the offshore session the Australian Dollar traded in a similar pattern again running out of steam around the 0.9960 area. With the local markets shut today in celebration of Australia Day, movement locally is expected to be limited and direction taken from offshore. The Aussie opens steady at 0.9920.

We expect a range today of 0.9910 - 0.9975

New Zealand Dollar: The New Zealand spent most of the day above the 0.76 cents mark yesterday as a return to riskier assets attract traders to high yielders. The RBNZ is scheduled to meet tomorrow and many are expecting that interest rates will remain on hold when the announcement is made at 9.00 AM NZ time. Concerns about local growth in New Zealand, which saw GDP slip to a 0.2% in the last quarter, has fuelled speculation that the Governor Allan Bollard will look to raise rates around third quarter 2011. In the offshore session, the NZ Dollar traded between 0.7625 and a high of 0.7660. Against the Australian Dollar the NZ Dollar is higher and is trading at 0.7685.

We expect a range today of 0.7625 - 0.7690

Great British Pound: Pound Sterling opens sharply lower today against the greenback at 1.5800 after weaker than expected domestic growth data dampened speculation that rates would need to rise in 2011. The pound hit a two-week low of 1.5750 during trade on Tuesday as GDP fell 0.5 per cent in the three months to December after rising the previous quarter. The pound sank from a high of 1.6016 early in the session. Meanwhile, the pound opens weaker against both the Australian Dollar (1.5900) and the New Zealand Dollar (2.0645).

We expect a range today of 1.5850 - 1.5915

Majors: The recent uptrend in the Euro continued early in the overnight session with the 16-nation currency hitting a 2-week zenith of 1.3686. The unit fell sharply back towards 1.3600 during the New York time zone as US consumer confidence data unexpectedly rose to 60.6 in January - a seven-month high - and up from 53.3 the previous month. Support for the Euro emerged around the 1.3600 level and the unit opens this morning at 1.3650. Meanwhile, the Japanese Yen has strengthened (82.00) after the Bank of Japan yesterday raised its growth forecasts as global demand supports the economy.

Data releases

AUD: Australia Day public holiday

NZD: Credit Card spending, Dec

JPY: No data today

GBP: Bank of England minutes

EUR: No data today

USD: FOMC rate decision