Money and Forex Blog

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Australian Dollar:  A smaller than anticipated rise in the consumer price index took the Aussie from an intraday high of 0.9860 down to 0.9720 in very quick fashion as traders lowered their expectations for an interest rate rise when the Reserve Bank meets next week. Headline inflation rose 0.7 per cent in the September quarter, slightly less than the 0.8 per cent expected by most economists for a an annualised reading of 2.8 per cent.. During the offshore session, the unit moved as low as 0.9650 as commodities were softer and gold plunged 10 per cent to US$1,322/oz. Despite yesterday's sell-off, the Aussies uptrend against the greenback remains intact at this stage.

We expect a range today of 0.9650 – 0.9750

New Zealand Dollar:  Against the greenback, the kiwi dollar opens at 0.7450. As expected, the Reserve Bank of New Zealand has left the official cash rate (OCR) on hold at 3 per cent. In the accompanying statement moments after the announcement, RBNZ Governor Alan Bollard noted that "downside risks to the outlook for global growth continue". Meanwhile, the kiwi has outperformed its trans-Tasman rival over the last 24 hours and opens today at 0.7650 after Australian inflation data came in a shade softer than anticipated yesterday, lowering expectations for an interest rate rise next week when the central bank meets to discuss monetary policy.

We expect a range today of 0.7420 – 0.7520

Great British Pound:  Pound Sterling opens marginally lower at 1.5769 as the greenback rallied across the board for a second consecutive session. Despite stronger-than-expected growth data for the third quarter, the pound is likely to remain under pressure near-term as the impact of last week's drastic UK budget cuts are still being digested by financial markets. In overnight trade, the pound moved down from a high of 1.5865 to a low of 1.5730. Meanwhile, the pound is higher against both the Australian Dollar (1.6220) and the New Zealand Dollar (2.1200).

We expect a range today of 1.6180 – 1.6290

Majors: The big dollar moved higher overnight against a basket of currencies on speculation that the second round of quantitative easing will be a gradual process rather than a large upfront commitment. The greenback has climbed to a two-week high against the Japanese Yen at 81.68. New home sales in the United States increased 6.6 per cent to an annual pace of 307,000 in September which was also dollar-supportive. Over in Europe, sovereign debt concerns surfaced once more after Greece's Finance Minister said a shortfall in tax revenues was hampering efforts to reduce the budget deficit. The 16-nation euro currency opens lower today at 1.3760.

Data releases

AUD: Conference Board Leading Index, Aug

NZD: RBNZ Rate decision (see above)

JPY:  Retail Sales, Sep

GBP:  Nationwide House Prices, Oct

EUR: German Unemployment change, Oct

USD: Initial jobless claims, Oct 23

Australian Dollar:  The Aussie was largely range bound during yesterday's domestic session moving between 0.9880 and 0.9920 ahead of todays release of third quarter inflation data. The Aussie has been well supported since Mondays strong producer price data whilst greenback weakness continues to be a major driver for high-yielding currencies at the moment. Overnight, the Aussie hit a high of 0.9926. A strong CPI figure today is largely factored into the currency at these levels which poses some risk to the downside for a short period should the data come in softer than expected. Some position-squaring ahead of the data has seen the Aussie retreat somewhat overnight to open this morning at 0.9843.

 

We expect a range today of 0.9775 – 0.9890

 

New Zealand Dollar:  In the absence of any local economic data the kiwi remained well supported throughout yesterdays domestic session reaching a high of 0.7535. Greenback weakness continues to be the major theme driving the high-yielding currencies and the unit may re-test the key 0.7640 level seen earlier in October as the US Federal Reserve may announce next week a second round of quantitative easing. On the interest rate front, another pause is expected when the RBNZ makes its announcement on Thursday morning. In overnight trade, the kiwi hit a high of 0.7542 but opens lower today at 0.7478. Against the Australian Dollar, the kiwi is little-changed at 0.7590.

 

We expect a range today of 0.7445 – 0.7510

 

Great British Pound:  Pound Sterling rallied across the board after British growth data come in at double market expectations. Gross domestic product for the third quarter showed 0.8 per cent pushing Sterling to an overnight high of 1.5895. Also assisting the currency overnight was confirmation of the UK's AAA credit rating by S & P and a restoration of its outlook from "negative" to "stable". The pound opens at 1.5835 against the greenback today. Meanwhile, the pound is sharply higher against the Australian Dollar (1.6085) and the New Zealand Dollar (2.1150).

 

We expect a range today of 1.6035 – 1.6140

 

Majors: The U.S. Dollar moved higher overnight against the Japanese Yen and opens on Wednesday at 81.42 on renewed speculation of intervention to weaken the Yen to protect exporters. Despite authorities in Japan acknowledging intervention six weeks ago, the currency has still managed to appreciate more than 5 per cent in that time. Meanwhile, the big dollar is also stronger against the Euro (1.3845) after the U.S. Conference Board's consumer sentiment index climbed to a better-than-expected 50.2 in October from a revised 48.6 in September. The 16-nation Euro zone currency fell from an overnight high of 1.3981.

 

Data releases

 

AUD: CPI, Q3

NZD: NBNZ Business Confidence, Oct

JPY:  No Data today

GBP: No data today

EUR: No data today

USD: Durable Goods orders, Sep

Australian Dollar:  The Aussie spiked sharply above US99 cents during local trade yesterday after stronger-than-expected producer price data (PPI) increased the prospects for an interest rate rise next month. Australia''s PPI at the final stage of production rose 1.3 per cent in the September quarter - more than double the 0.5 per cent expected by most economists. The buying continued during the European session and the unit hit a high of 0.9973. Tomorrow sees the release of third quarter inflation data and anything above the forecast of 0.8 per cent may see the Aussie push through parity during the local session.

 

We expect a range today of 0.9845 – 0.9965

 

New Zealand Dollar:  Despite local markets being closed yesterday for Labour Day, the kiwi managed a US1-cent range as it followed a higher Australian Dollar to finish the Asian session around 0.7530. Stronger-than-expected producer price data across the Tasman had their currency on another run towards parity with the greenback. Meanwhile, momentum continued during the offshore session which saw a high of 0.7560. Against the Aussie, the kiwi opens lower today at 0.7590. Interest rates in new Zealand are expected to remain on hold at 3 per cent later in the week when the RBNZ announces its rate decision on Thursday.

 

 

We expect a range today of 0.7490 – 0.7560

 

Great British Pound:  Despite another round of greenback weakness, pound sterling opens little-changed at 1.5725 against its US counterpart after a slump in mortgage approvals heightened speculation the Bank of England may need to buy more assets. The number of home loans granted in September was 31,104 – an eighteen month low. In overnight trade, the pound moved between a low of 1.5655 and a high of 1.5772. Meanwhile, the pound opens weaker against both the Australian Dollar (1.5880) and the New Zealand Dollar (2.0910).

 

We expect a range today of 1.5800 – 1.5900

 

Majors: The so-called big dollar is weaker against a basket of currencies after the weekend's Group of 20 pledge to avoid "competitive devaluation" failed to dispel speculation the US Federal Reserve will debase the greenback by announcing a second round of quantitative easing. The dollar dropped to a 15-year low against the Japanese Yen at 80.41. Meanwhile, the 16-nation Euro opens at 1.3963 after hitting an overnight high of 1.4079. There is strong technical resistance around the 1.4000 area.

 

 

Data releases

 

AUD: No data today

NZD: No data today

JPY: No data today

GBP: GDP, Q3

EUR: German Gfk Consumer Confidence survey

USD: Consumer Confidence, Oct

Australian Dollar :: Growth and inflation figures released from China supported their move to increase interest rates earlier this week. Chinese GDP expanded 9.6% for the previous quarter, exceeding expectations, while inflation accelerated at its fastest pace in 23mths at a rate of 3.6%. The Australian Dollar slid more than half a cent against the US Dollar heading towards the 0.9800 mark before recovering its losses offshore. Positive data out of Germany improved investor appetite for growth linked currencies with the Aussie tackling 0.9880 against the Greenback on several occasions overnight before tumbling to an overnight low of 0.9740. This morning the Australian Dollar opens lower at 0.9773 versus the US Dollar.

 

We expect a range today of 0.9710 – 0.9860

 

New Zealand Dollar :: According to the latest ANZ-Roy Morgan Consumer Confidence survey, New Zealand consumer confidence fell in October to a 14 month low. The index fell from 116.4 in September to 113.6 adding further signs of a sluggish economic recovery. Investors promptly sold off of the Kiwi easing the New Zealand Dollar from 0.7550 to an overnight low 0.7434 against the Greenback, a loss of more than 1.5%. The Kiwi weakened as economic data released today from Washington softened expectations of aggressive US Federal Reserve monetary policy easing next month with more than half of the Fed's 12 regions growing modestly.  Today the Kiwi opens at 0.7450 against the US Dollar.

 

We expect a range today of 0.7400 – 0.7510

 

Great British Pound :: The Pound tumbled, testing recent daily lows, as the nation's economic data continues to deteriorate. British retail sales figures shocked, falling -0.2% from last month. Economist had expected sales figure to improve 0.4%. Mortgage approvals had also declined in line with expectations. The figures out of the UK increase the likelihood of further quantitative easing by the Bank of England as policy-makers express support for the move. This morning the Sterling opens buying 1.5708 US Dollars ahead of this week's G20 meeting. Meanwhile, the pound opens steady against the Australian Dollar at 1.6060.

 

We expect a range today of 1.6000 – 1.6100

 

Majors :: The Euro made a run for 1.4050 against the American Dollar offshore when news German flash manufacturing and services PMI had improved. Market expectations were for the indexes to print at 54.6 and 55.0 respectively. Growth in Germany remains strong in both sectors with manufacturing improving to 56.1 and services to 56.6. Flash figures for the Euro Zone revealed manufacturing expanded at a faster pace than services. The Euro could not hold its gains against the Greenback as investors flocked to US Dollar following comments from Brazil's Finance Minister ahead of the G20 meeting. Minister Guido Mantega said 'He [Geithner] assured me that the policy is not to weaken the dollar, but on the contrary, to strengthen it' and that they agreed to act jointly with the Group of 20 nations to find a solution for the dollar's depreciation.

 

Data Releases

• AUD:  No data today
• EUR: German IFO, Oct
• GBP: No data today
• JPY: No data today
• NZD: No data today
• USD: No data today

:: Australian Dollar: The Australian Dollar rose for the first time in 2 days after its drop to the lowest level in 2 weeks. The Aussie dipped to 0.9662 against the US Dollar after Westpac's Leading Economic Index fell by 0.1% in August for the first time since May 2009. Bullish sentiment overcame the previous day's weakness and the Aussie recovered all of its lost ground as it targeted the 0.9900 handle against the Greenback. Despite China's unexpected interest rate hike Rio Tino, the third largest mining company, announced its plan for a $3.1 billion expansion of its Australian iron ore operations while Melbourne based BHP confirmed they will press ahead to boost its own iron ore production. The Aussie snapped back to a fresh intra-day high of 0.9888 against the US Dollar before opening this morning at 0.9866 against the Greenback.

- We expect a range today in the AUD/USD rate of 0.9800 to 0.9900

:: Great Britain Pound: The Pound remained capped at 1.5750 against the US Dollar for most of European session after slipping to 1.5650 versus the Dollar early in Asia. Minutes released from the Bank of England showed a 3 way split 7-1-1 among its policy makers with 'some of the members felt the likelihood that further monetary stimulus would become necessary in order to meet the inflation target in the medium term'. Meanwhile Chancellor of the Exchequer George Osborne outline plans to eliminate a 156 billion deficit including eliminating almost 500,000 public-sector jobs and imposing a levy on banks. The Sterling rallied to 1.5877 against the Greenback as rebounding mining stocks wetted investor appetite. The Sterling opens this morning buying 1.5846 US Dollars and 1.6050 against the Aussie.

- We expect a range today in the GBP/AUD rate of 1.5950 to 1.6150

:: New Zealand Dollar: The Kiwi traded near its lowest level against the Yen in a month and weakest in almost 2 weeks against the US Dollar after dairy prices fell to the lowest in more than two months and RBNZ Governor Alan Bollard declined suggestions New Zealand's Reserve Bank should intervene in the foreign exchange market to aid the nation's exporters. Bollard said the banks options were quite limited and 'the times we feel we can be effective are when we are around the peak or trough of the cycle and also when the exchange rate setting may be fundamentally driven by domestic policy distortions.' Moving offshore the Kiwi reached 0.7566 against the Greenback following a Federal Reserve regional survey showed the economy expanded in September at a "modest pace." This morning the Kiwi starts the day at 0.7543 against the US Dollar.

- We expect a range today in the NZD/USD rate of 0.7500 to 0.7600

:: Majors: The Euro benefitted as stocks rebounded led higher by PSA Peugeot Citroen, Boeing and Yahoo! After their earnings beat estimates. German producer prices rose 0.3%, beating market expectations of a 0.2% expansion. The Euro regained more than 1% on the US Dollar rallying from 1.3697 to 1.3990 against the Greenback. Meanwhile the US Dollar reached a 15 year low against the Japanese Yen dipping to 80.83 overnight as reports from the US Fed showed Manufacturing activity, demand for nonfinancial serves, consumer spending, new motor vehicle sales and the tourism sector all saw stable to mild increases in activity in September and early October with little sign of accelerating.

:: Data Releases:

• AUD: No data slated for release
• CAD: Leading Index
• EUR: French and German Flash Manufacturing
• GBP: Retail Sales; MPC Member Posen speaks
• JPY: No data slated for release
• NZD: Credit Card Spending
• USD: Unemployment Claims

:: Australian Dollar: The Australian Dollar peaked at 0.9955 versus the US Dollar as traders speculated a further hike in interest rates sometime this year following the release of the Reserve Bank's minutes. Policy makers in Australia said 'the case to wait before making a tightening move was that the economy was still expected to continue growing at trend in the near term, credit growth had softened somewhat and the rise in the exchange rate would, if it continued, effectively be tightening financial conditions at the margin." However China's surprise move to increase interest rates 25pts to 5.56%, the first since 2007, sapped demand for growth linked currencies. The Aussie has fallen almost 3% in overnight trade opening this morning at 0.9690 against the Greenback.

- We expect a range today in the AUD/USD rate of 0.9625 to 0.9800

:: Great Britain Pound: The British Pound dipped below 1.5700 US Dollars for the first time in almost 3 weeks as investors prepared for the minutes from the Bank of England's latest meeting to be published this evening. Reports from the UK showed industrial orders had declined sharply to a six month low of -28, well below the -19 consensus, fuelling expectations of further easing measures to be taken by the Central Bank. China's decision to raise their rates by 25pts saw British resource stocks decline, putting pressure on the Sterling. This morning the Pound opens at 1.5702 versus the US Dollar. Meanwhile the Sterling is stronger against the Aussie and Kiwi starting the day at 1.6217 and 2.1120 respectively.

- We expect a range today in the GBP/AUD rate of 1.6100 to 1.6220

:: New Zealand Dollar: The Kiwi opens this morning buying 0.7450 US Dollars ahead of this morning's conference with RBNZ Governor Bollard. Initially spiking at 0.7600 against the Greenback after the Reserve Bank of Australia said its recent decision to hold interest rates steady was finely balanced, the New Zealand Dollar was sold off in a wave of risk aversion sparked by the surprise rate hike by China. The Kiwi slipped below 0.7430 US Dollars as US Treasury Secretary Timothy Geithner stated the US would not pursue currency devaluation.

- We expect a range today in the NZD/USD rate of 0.7360 to 0.7540

:: Majors: The Euro declined for the third consecutive day as investors continued to trade cautiously. European Central Bank President Jean-Claude Trichet in no uncertain terms publically disagreed with ECB member Weber on the need to phase out bond purchases immediately over the weekend. Trichet's stance may be justified as the stronger Euro has eroded the regions competiveness with Euro Zone Current Account figures showing a decline of -7.5 Billion. German economic sentiment also declined more than expected. The Euro fell from an intra-day high of 1.4000 to 1.3710 US Dollars. The Yen also suffered as the Japanese government downgraded its assessment of the economy for the first time in 20 months. Investors sought the safety of the US Dollar selling off Japanese securities. The Greenback climbed above 81.90 Japanese Yen after Treasury Secretary Geithner said the U.S. will endeavour to preserve confidence in a strong currency.

:: Data Releases:

• AUD: Westpac leading index, Aug
• CAD: No data today
• EUR: German producer prices, Sept
• GBP: Bank of England minutes, Oct
• JPY: Leading Index, Sept
• NZD: No data today
• USD: Fed's Beige Book, Oct

:: Australian Dollar: The Aussie came within a whisker of parity during overnight trade hitting a high of 0.9993, its highest level against the US Dollar since the currency floated in 1983. Buoyed by strong commodities, high interest rates and a friendless greenback that has been sold heavily in recent weeks as the US Federal Reserve grapples with the prospect of pumping more money into their economy to avert a double dip recession. Adding to the bullish sentiment yesterday was the release of higher-than-expected inflation expectations which surged to 3.8 per cent this month according to the monthly Melbourne Institute survey. The official cash rate is tipped to rise by 25 basis points to 4.75 per cent next month. The Aussie eased back throughout the New York session and opens at 0.9912.

- We expect a range today in the AUD/USD rate of 0.9875 to 0.9965

:: Great Britain Pound: The Pound (1.6002) has moved higher against the U.S. Dollar, once again thanks largely to the well-documented greenback woes rather than any underlying Sterling strength. In overnight trade the pound hit a high of 1.6066. The pound however is underperforming against the Euro (0.8786) as the British economy languishes and traders speculate the Bank of England will be forced to keep rates at the record low of 0.5 per cent. Meanwhile, the pound opens higher against both the Australian Dollar (1.6131) and the New Zealand Dollar (2.1140).

- We expect a range today in the GBP/AUD rate of 1.6075 to 1.6145

:: New Zealand Dollar: The New Zealand Dollar opens lower today at 0.7560 after a fall during yesterday''s domestic session. Statistics New Zealand reported that August retail sales fell further than expected suggesting interest rates are likely to remain on hold. During overnight trade, the kiwi recovered hitting a high of 0.7643 on the back of a surging Australian Dollar. Also looming large on the data front is next weeks inflation reading which is expected to come in at a ten year low of 1.3 per cent. This may keep a lid on the kiwi, particularly against the Australian Dollar where interest rates in that country are widely tipped to increase next month.

- We expect a range today in the NZD/USD rate of 0.7535 to 0.7600

:: Majors: The so-called big dollar hit fresh calendar-year lows against a basket of currencies overnight and a new 15-year low versus the Japanese Yen at 80.88. Weaker-than-expected economic data added to the greenback's woes. Initial jobless claims ballooned to 462,000 for the week ending October 9, whilst the U.S. trade deficit widened 8.8 per cent to $46.3 billion in August. The gloomy growth outlook and the prospect of a second round of quantitative easing by the Federal Reserve continue to weigh on the US Dollar. Meanwhile, the 16-nation euro opens higher today at 1.4058.

:: Data Releases:

• AUD: No data today
• CAD: No data today
• EUR: Euro Zone CPI, Sept
• GBP: No data today
• JPY: Industrial Production, Aug
• NZD: No data today
• USD: Uni of Michigan Confidence, Oct