Australian Dollar: During Thursday''s local session the Aussie recovered from a three-week low beneath US97 cents but was still feeling the effects of the relatively benign inflation data released mid-week. Also adding to Aussie softness, if you could call it that, was weaker base metals prices and a stronger greenback that has rallied against a basket of currencies this week. However, the mood shifted somewhat offshore and the two-day greenback rally snapped back which saw the high-yielders on the move again - including the Aussie which hit an overnight high just above 0.9800. We open at 0.9780 this morning.

We expect a range today of 0.9750 - 0.9825

New Zealand Dollar: The kiwi opens higher against the greenback today at 0.7532 after the official cash rate (OCR) was left on hold yesterday at 3 per cent. The unit moved higher soon after the announcement as Reserve Bank Governor Alan Bollard noted in the accompanying statement that "while it is appropriate to keep the OCR on hold today, it remains likely that further removal of monetary policy support will be required at some stage". Markets are betting that rates may need to rise by as much as 100 basis points to 4 per cent by this time next year. Meanwhile, the kiwi opens higher against the Australian Dollar today at 0.7700.

We expect a range today of 0.7490 - 0.7555

Great British Pound: The pound (1.5935) moved higher overnight buoyed by optimism that better-than-expected data releases earlier in the week will delay another round of quantitative easing by the Bank of England. Sterling initially hit an overnight low of 1.5761 after a report from Nationwide Building Society showed the average cost of a home dropped 0.7 per cent from September to GBP164,381 - a seven month low. Meanwhile, the pound opens higher against the Australian Dollar at 1.6280 and lower against the New Zealand Dollar at 2.1140.

We expect a range today of 1.6250 - 1.6330

Majors: The greenback's two-day rally against a basket of currencies was stopped in its tracks overnight as traders speculated the Federal Reserve will debase the currency by purchasing government debt. A report to G20 nations by the International Monetary Fund suggesting the US Dollar is on the "strong side" relative to economic performance did little to aid the greenback either. The Euro opens at 1.3928 as traders betting on the two-day dollar rally continuing cut their losses at 1.3850 and 1.3900. Meanwhile, the dollar opens lower against the Japanese Yen today at 81.00. The U.S. Federal Reserve meet for 2 days next week where they are widely tipped to announce a bond purchase program somewhere in the order of an initial US$500 billion.

Data releases

AUD: Private Sector Credit, Sep

NZD: Trade Balance, Sep

JPY: Jobless Rate, Sep

GBP: Mortgage Approvals, Sep

EUR: No data today

USD: GDP, Q3

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