Australian Dollar:

Australia''s currency declined very slightly yesterday for the first time in five days as there was a general move back into the US based currency. Before the move lower the Aussie Dollar advanced early on speculation that strong commodity prices will continue to prop up the domestic Unit.

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After reaching its highest level seen since it began trading freely in 1983 topping out briefly just above the 1.10 mark against the greenback, we open this morning slightly lower at a rate of 1.0940. Today the Reserve Bank of Australia is widely tipped to keep its benchmark interest rate unchanged at a rate of 4.75 per cent

We expect a range today of 1.0880 - 1.0990

New Zealand Dollar:

The New Zealand dollar declined yesterday erasing some of the recent ground which has been made against its US Counterpart. Despite the minor retracement, the kiwi dollar was purchased early, as the rate reached an eventual high of US 0.8117. While US Stock Futures rose during intraday trade, the kiwi struggled to match its move higher. In the absence of any major announcements today we see the kiwi open this morning buying 0.8060 US Cents. Meanwhile, the kiwi opens steady against its trans-Tasman rival at 0.7360.

We expect a range today of 0.8030 - 0.8125

Great British Pound:

The Great British Pound Opens this morning around half a cent lower from this time yesterday, currently trading at a rate of 1.6647. With a further public holiday in the UK yesterday the initial move down in the pound was caused by the announcement of Osama Bin Laden's death. While investors immediately moved into US Based Assets, such a shift ended up being quite short lived. With a wide range of economic fundamentals due out of the UK later in the week, the stage for a further prolonged advancement appears set, should some solid credentials be established. Meanwhile, the pound opens steady against both the Australian Dollar (1.5200) and the New Zealand Dollar (2.0650).

We expect a range today of 1.5160-1.5240

Majors:

Despite the initial optimism in the US which was spurred by the announcement of Osama bin Laden's death, US Stocks retreated overnight with the S&P500 falling 2.39 points to 1361.22. In addition to this, positive manufacturing results also out of the US, showed manufacturing gained pace to be consistent with steady growth. Despite this, the Greenback struggled to make any ground from its recent ranges. Meanwhile in the Euro zone we open this morning at a rate of 1.4820 after fresh ground was made above the 1.49 Mark overnight. Driving this gain was European Manufacturing growth amid higher output readings for both Germany and France. The USD/JPY is currently trading at a rate of 81.24.

Data releases

AUD: RBA Official Cash Rate

NZD: Labor Cost Index q/q

JPY: Bank Holiday

GBP: Manufacturing PMI

EUR: PPI m/m

USD: No Data

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