Money and Forex Blog

Australian Dollar:  The Aussie (0.9860) moved above US99 cents during domestic trade on Monday after some short-term relief was provided to markets with the announcement of the European Union's (EU) bailout plans for Ireland. The Aussie followed the Euro higher during yesterday's domestic session as the EU and International Monetary Fund combined to pledge a multi-year financial package to cover Ireland's fiscal needs and future capital requirements of its banking system. The gains were short-lived however and a bout of risk-aversion saw the Aussie come off and hit an overnight low of 0.9822. Meanwhile, the Aussie opens higher against the kiwi today at 1.2760 after ratings agency Standard and Poor's revised its outlook on New Zealand's foreign currency sovereign credit rating to negative from stable.

We expect a range today of 0.9820 – 0.9935

New Zealand Dollar:  After steady gains throughout most of the domestic session towards a high of 0.7830, the kiwi took a US1 cent tumble as ratings agency Standard and Poor's revised its outlook on New Zealand's foreign currency sovereign credit rating to negative from stable. During the offshore session, the kiwi moved down to a low of 0.7693 due to another bout of risk aversion as the market digests the Irish sovereign debt bailout plans. The unit has recovered slightly opens today 0.7720. On the cross rates, the kiwi is also weaker and opens against the Australian Dollar at 0.7810.

We expect a range today of 0.7680 – 0.7755

Great British Pound: The pound opens weaker today at 1.5937 as risk aversion gripped currency markets prompting buying of the greenback as a haven. Despite the recent announcement of a combined EU/IMF bailout of Ireland, markets appear concerned the measures do not adequately address long term solvency issues. The local economic calendar is relatively light early this week with the exception of tomorrow's release of 3rd quarter economic growth data which most economists expect to come in around 0.8 per cent. Meanwhile, the pound is steady against the Australian Dollar (1.6165) and higher against the New Zealand Dollar (2.0630).

We expect a range today of 1.6120 – 1.6200

Majors: The Euro moved higher during Asian trade on Monday hitting an intraday zenith of 1.3785 after the European Union and International Monetary Fund combined to pledge a multi-year financial package to cover Ireland's fiscal needs and future capital requirements of its banking system. The gains were short-lived however and the 16-nation currency opens lower today at 1.3600 after Moody's Investor Services said it may lower Ireland's credit rating by more than one level. Market participants sold the Euro down to an intraday low of 1.3576 amid concerns the bailout package does not address long term solvency needs. Meanwhile, the greenback opens little-changed against the Japanese Yen at 83.23.

Data releases

AUD: No data today

NZD: RBNZ 2-year inflation expectation, Q4

JPY: No data today

GBP: No data today

EUR: German GDP, Q3; Euro Zone PMI, Nov

USD: GDP Q3; Existing home sales, Oct; Personal Consumption expenditure, Q3

Australian Dollar:  The Aussie (0.9860) moved above US99 cents during domestic trade on Monday after some short-term relief was provided to markets with the announcement of the European Union's (EU) bailout plans for Ireland. The Aussie followed the Euro higher during yesterday's domestic session as the EU and International Monetary Fund combined to pledge a multi-year financial package to cover Ireland's fiscal needs and future capital requirements of its banking system. The gains were short-lived however and a bout of risk-aversion saw the Aussie come off and hit an overnight low of 0.9822. Meanwhile, the Aussie opens higher against the kiwi today at 1.2760 after ratings agency Standard and Poor's revised its outlook on New Zealand's foreign currency sovereign credit rating to negative from stable.

We expect a range today of 0.9820 – 0.9935

New Zealand Dollar:  After steady gains throughout most of the domestic session towards a high of 0.7830, the kiwi took a US1 cent tumble as ratings agency Standard and Poor's revised its outlook on New Zealand's foreign currency sovereign credit rating to negative from stable. During the offshore session, the kiwi moved down to a low of 0.7693 due to another bout of risk aversion as the market digests the Irish sovereign debt bailout plans. The unit has recovered slightly opens today 0.7720. On the cross rates, the kiwi is also weaker and opens against the Australian Dollar at 0.7810.

We expect a range today of 0.7680 – 0.7755

Great British Pound: The pound opens weaker today at 1.5937 as risk aversion gripped currency markets prompting buying of the greenback as a haven. Despite the recent announcement of a combined EU/IMF bailout of Ireland, markets appear concerned the measures do not adequately address long term solvency issues. The local economic calendar is relatively light early this week with the exception of tomorrow's release of 3rd quarter economic growth data which most economists expect to come in around 0.8 per cent. Meanwhile, the pound is steady against the Australian Dollar (1.6165) and higher against the New Zealand Dollar (2.0630).

We expect a range today of 1.6120 – 1.6200

Majors: The Euro moved higher during Asian trade on Monday hitting an intraday zenith of 1.3785 after the European Union and International Monetary Fund combined to pledge a multi-year financial package to cover Ireland's fiscal needs and future capital requirements of its banking system. The gains were short-lived however and the 16-nation currency opens lower today at 1.3600 after Moody's Investor Services said it may lower Ireland's credit rating by more than one level. Market participants sold the Euro down to an intraday low of 1.3576 amid concerns the bailout package does not address long term solvency needs. Meanwhile, the greenback opens little-changed against the Japanese Yen at 83.23.

Data releases

AUD: No data today

NZD: RBNZ 2-year inflation expectation, Q4

JPY: No data today

GBP: No data today

EUR: German GDP, Q3; Euro Zone PMI, Nov

USD: GDP Q3; Existing home sales, Oct; Personal Consumption expenditure, Q3

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m

Australian Dollar: Motor vehicle sale figures in Australia for October decreased by -0.6% compared to the month prior. The Aussie fell to a 2 week low as the Euro weakened over European sovereign debt concerns and Chinese monetary policy fears. Moving offshore the Aussie rebounded from it's0.9810 low against the Greenback climbing more than 1% to breaking through its 0.9900 barrier. The overnight rally in risk triggered as stocks gained, increasing demand for higher yielding currencies. Despite Commerce Department data showing U.S. retail sales had gained 1.2%, the most in seven months in October, investor sensitivity tuned into the decline of Empire State Manufacturing Index (-11.1)  and increases in business inventories which indicate that the recovery in the U.S. economy is still uneven. Today the Aussie starts the day at 0.9840 against the US Dollar.

We expect a range today of 0.9815-0.9960

New Zealand Dollar:  New Zealand September quarter retail sales figures surprised the market growing 1.6% from the previous month. It seems consumer spending ahead of an increase in goods and services tax on October 1 may have been under-estimated by the market with median forecasts expecting only 1.1% increase. Stronger than expected consumer spending combined,  income-tax cuts and injections of capital for rebuilding after the worst earthquake in eight decades rocked Canterbury province are expected to bolster New Zealand's recovery. Although investors sold off risk  late in Asia, market sentiment improved overnight increasing demand for higher-yielding currencies pushing the Kiwi to a intra-day high of 0.7775 against the US Dollar. This morning the Kiwi opens at 0.7725 versus the US Dollar.

We expect a range today of 0.7650- 0.7805

Great British Pound: The Pound drifted below 1.6050 against the US Dollar overnight after the Rightmove House Price Index fell by 3.2% in November after a 3.1% increase in October. Lack of demand had British home sellers cutting average asking prices in England and Wales by the biggest monthly drop since December 2007. The Euro Zone's precarious position and growing realization that a rescue of Ireland could cost UK taxpayers and additional 7 Billion pounds as well as expose UK banks to potential write-offs on Irish government debt boosted demand for the relative security of ye old faithful Greenbacks. This morning the Pound opens lower versus the US Dollar at 1.6050 while sitting at 1.6300 against the Aussie and 2.0780 Kiwi.

We expect a range today of 1.6220-1.6415

Majors: The Euro entered its 10^th consecutive day of losses against the US Dollar on  speculation that Ireland may be forced to assume  an EU bailout package as the country's credit continued to come under assault in global capital markets. A September trade surplus of 2.4 billion for the Euro zone did not halt the single currency's decent towards a six week low against the Greenback as investors focused on the pressing matter at hand. While Ireland continues to resist pressure from the European Union to accept aid from the 750 billion emergency aid fund created in May for its public budget, the European Central bank has suggested Ireland would be able t use the emergency reserve to 'support' Irish banks and push their capital above regulatory targets.  "The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital," ECB Vice President Constancio said in Vienna.

Data releases

AUD: Monetary Policy Meeting Minutes

NZD: No Data today

JPY: Tertiary Industry Activity m/m

GBP: CPI y/y, BOE Inflation Letter

EUR: German ZEW Economic Sentiment, CPI y/y

USD: PPI m/m, TIC Long-Term Purchases, Industrial Production m/m