Australian Dollar: Prospects that global growth will spur demand for commodities has seen the Australian Dollar rise to its strongest level since it was freely floated in 1983. A mid-afternoon rally during the Asian session yesterday meant we saw the Aussie push through the $1.03 barrier for the first time during onshore hours, primarily driven by a weakening Yen and demand to buy the AUD/JPY cross.

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Reaching a session high of just shy of 1.0330, US employment data and positive risk sentiment meant these highs were tested again and we open here this morning. Today's economic docket holds two sets of key fundamental data in the form of Retail Sales and Building Approvals and investors will await the results to see if the Aussie can hold onto its recent momentum.

We expect a range today of 1.0270 - 1.0350

New Zealand Dollar: The New Zealand Dollar has pushed to its highest level in five weeks against the Greenback as demand for risky assets increases. Advancing through 76 cents, levels around 0.7630 were seen, potentially establishing resistance ahead of Chinese manufacturing reports due later this week. The reports which are forecast to show a quicker than expected expansion in the sector, are bound to impact the Kiwi as China is New Zealand's second biggest export market. This morning opens at 0.7620 against the Greenback and slightly higher against the Aussie at 0.7385, with NZNZ Business Confidence figures due out later today.

We expect a range today of 0.7570 - 0.7660

Great British Pound: The Great British pound has rallied overnight as the U.K. services sector reported its fastest growth since 2002. The sector, which accounts for approximately three-quarters of the economy, grew 1.3% from last month sparked by the recovery of hotels and restaurants after the coldest December in a century. In a separate release it has been estimated the government's budget will add 0.29 percentage points to inflation and thus sparking yet another debate about monetary policy. Increased bets of a rates rise around July has taken Sterling to 1.6080 by the close of New York, with recent losses against the Aussie being somewhat reclaimed at 1.5570. Kiwi strength however has seen this pair test lows near 2.1000 and open this morning at 2.1080.

We expect a range today of 1.5500 - 1.5620

Majors: The privately released ADP Non- Farm Employment change report showed an increase in the number of US jobs and this has provided further backing to an early end of quantitative easing measures, currently due to end in June. This report, which precedes the government-released employment data by 2 days, showed an additional 201,000 jobs to have been added by US companies since the beginning of March and this data sparked a broad-based risk rally in the markets, with the Euro gaining 0.3% to reach 1.4140 and the safe-haven Yen declining to a 3-week low against the Greenback. Currently at 1.4125, the Euro remains strong as the German Finance Minister declares the region is prepared for any turbulence the ongoing debt-crisis may bring to their way. On the contrary the Japanese Yen, currently at 82.90, continues to display weakness as a combination of intervention strategies and its safe haven status carry on eroding earlier gains.

Data releases

AUD: Building Approvals m/m; Retail Sales m/m; Private Sector Credit m/m

NZD: NBNZ Business Confidence

JPY: Manufacturing PMI; Average Cash Earnings y/y; Housing Starts y/y

GBP: Nationwide HPI m/m; BOE Credit Conditions Survey

EUR: German Retail Sales m/m; German Unemployment Change; CPI Flash Estimate y/y

USD: Chicago PMI; Factory Orders m/m; Natural Gas Storage

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