Australian Dollar: The Australian Dollar opens sharply higher today at US105.30 cents on the back of stronger global equity markets and commodity prices overnight. In the absence of any local data yesterday, market participants were content to play the ranges since the Aussie fell through support at 1.0480 earlier this week.

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During Tuesday's Asian session, the unit was supported around 1.0440 but the topside was limited to 1.0475. Further gains to the overnight rally are expected to be capped ahead of tonights parliamentary vote in Greece to pass deep budget cuts aimed at shoring up much-needed EU and IMF financial support. On the cross rates, the Aussie opens at 0.7320 against the Euro and 1.2970 against the New Zealand Dollar.

We expect a range today of 1.0480 - 1.0580

New Zealand Dollar: The New Zealand Dollar opens higher against its US counterpart today at 0.8110 on the back of stronger global equity markets and commodity prices overnight. The kiwi hit a 24-hour peak of 0.8123 during the New York session. Offshore events are driving movements in both the kiwi and the Australian Dollar at the moment. Local market participants are keenly awaiting tomorrows release of June business confidence and activity outlook with any negative readings likely to dent sentiment and send the kiwi back towards US80 cents.

We expect a range today of 0.8040 - 0.8140

Great British Pound: UK economic concerns continue to weigh on the Greta British Pound which opens marginally higher against its US counterpart at 1.6000. At least three Bank of England policy makers have expressed caution regarding talk of tightening credit conditions. The UK central bank's chief economist, Spencer Dale, has also described the economic recovery as "fragile". Interest rates in the UK have remained at 0.5 per cent since April 2009. In overnight trade, the pound moved between a low of 1.5911 and a high of 1.6043. Meanwhile, the pound opens sharply lower against both the Australian Dollar (1.5170) and the New Zealand Dollar (1.9700).

We expect a range today of 1.5160 - 1.5220

Majors: The US Dollar hit a 4-week high against the Japanese Yen of 81.25 as 10-year US Treasury yields rose above 3 per cent, increasing demand from international investors. The move higher came amid an unexpected fall in US consumer confidence which plummeted to a seven-month low of 58.5 in June from 61.7 the previous month. Meanwhile, the Euro firmed against several major currencies overnight on speculation Greece's parliament will approve austerity measures needed to ensure further financial support from the EU and the IMF. The 17-nation currency opens at 1.4365 and was buoyed overnight by a positive session on global equity markets and firmer commodity prices. However, there is strong resistance building for the Euro around the 1.4400 area.

Data releases

AUD: No data today

NZD: No data today

JPY: Industrial production, May

GBP: Mortgage approvals & consumer credit, May

EUR: Business climate & consumer confidence, June

USD: Pending home sales, May

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