Money and Forex Blog

:: Australian Dollar: The Australian Dollar moved above US90 cents for the first time in over a week as sentiment was buoyed by recent comments from the US Federal Reserve that it is prepared to take steps to safeguard the world’s largest economy from falling back into recession. Early yesterday, the Aussie hit a high of 0.9030 as commodity prices firmed and the local equity market rallied. However, the Aussie lost some ground late in the Asian session, dipping back to 0.8970 after the Bank of Japan’s announcement to boost funding facilities was not viewed by the market as doing enough to curb the Yen’s dramatic advance. The Aussie hit an overnight low of 0.8916 and opens near this level this morning. Attention will turn to domestic events this week with current account data today and the release tomorrow of second quarter national accounts which is expected to show a small increase in growth compared to the previous quarter. The AUD remains strong against the Euro (0.7035) and the New Zealand Dollar (1.2600).

- We expect a range today in the AUD/USD rate of 0.8900 to 0.8960

:: Great Britain Pound: Pound Sterling opens lower today against the greenback today at 1.5450. Due to London markets being closed to mark summer bank holiday, trading was fairly subdued and the currency drifted down towards an overnight low of 1.5455 as U.K. house prices slipped for a second month in August, down 0.3 per cent compared to a 0.1 per cent decline in July. Meanwhile, the pound opens marginally higher against both the Australian Dollar (1.7320) and the New Zealand Dollar (2.1850).

- We expect a range today in the GBP/AUD rate of 1.7280 to 1.7345

:: New Zealand Dollar: The New Zealand Dollar opens lower against the greenback today at 0.7060. During Monday’s domestic session the kiwi hung onto its recent gains made last Friday on the back of revived hopes for the US economy. Also supporting the unit above US71 cents yesterday was the release of local trade data which revealed the value of New Zealand’s exports continue to rise after a 12 per cent increase in July to NZ$3.6bio. The trade balance came in at a deficit of NZ$186mio for July which was much lower than the average deficit for the same month over the last five years. During offshore trading action the kiwi followed the Australian Dollar and the Euro lower all the way down to this morning’s opening level.

- We expect a range today in the NZD/USD rate of 0.7050 to 0.7090

:: Majors: The greenback has fallen sharply against the Japanese Yen and opens this morning in Sydney at 84.52. The Yen advance was precipitated by the Bank of Japan (BOJ) which expanded its bank loan program amid government pressure to stimulate the economy. The BOJ will boost the amount of funds in the facility by 10 trillion Yen to 30 trillion and said yesterday its action “will encourage a decline in market interest rates and further enhance monetary conditions” The big dollar has slumped from a 24-hour peak of 85.85 as the size of the stimulus disappointed some analysts and may not be enough to halt the Yen’s ascent. In US economic data, incomes rose only 0.2 per cent in July fuelling fears of slower spending in the months ahead. Meanwhile, the Euro opens lower today at 1.2660.

:: Data Releases:
AUD: Current account, Q2
CAD: GDP, Q2
EUR: German Unemployment, August
GBP: Mortgage Approvals, July
JPY: Industrial Production, July
NZD: Building Permits, July
USD: Consumer Confidence, August

:: Australian Dollar: The Australian Dollar is stronger across the board today and moved sharply higher against the greenback late in the offshore session on Friday. After spending most of last week being supported around the 0.8850 area, the Aussie opens at 0.8990 on Monday as risk appetite returned after a speech by U.S. Federal Reserve chairman Ben Bernanke who pledged to provide further "accommodation" in order to prevent the world's largest economy from slipping into a double dip recession. The Aussie hit a 24-hour high of 0.8998. Attention will turn to domestic events this week with current account data tomorrow and Wednesdays release of second quarter national accounts which is expected to show a small increase in growth compared to the previous quarter. The Aussie opens higher against the Euro (0.7050), the pound (0.5780) and the Japanese Yen (76.68).

- We expect a range today in the AUD/USD rate of 0.8980 to 0.9040

:: Great Britain Pound: Pound sterling opens little changed against the greenback (1.5523) despite stronger than expected local growth data announced on Friday. U.K. gross domestic product rose 1.2 per cent in the three months to June as construction expanded quicker than previously estimated. Over the last 24 hours the pound traded between a low of 1.5442 and a high of 1.5544. Despite a risk rally in currencies such as the Australian and New Zealand Dollars, Sterlings appreciation was limited as the breakdown of the GDP data revealed that the solid rises in household and government spending is unlikely to be maintained. As a result, the pound opens weaker against both the Aussie (1.7260) and the kiwi (2.1760).

- We expect a range today in the GBP/AUD rate of 1.7210 to 1.7285

:: New Zealand Dollar: The New Zealand Dollar opens higher today against its U.S. counterpart at 0.7122. Higher commodity prices supported the local unit last Friday during the domestic session with support holding around the US70-cent area. The currency came to life during the offshore session hitting a high of 0.7130 as risk appetite returned after a speech by U.S. Federal Reserve chairman Ben Bernanke who pledged to provide further "accommodation" in order to prevent the worlds largest economy from slipping into a double dip recession. Second quarter U.S. economic growth data (1.6 per cent) was not as bad as the market had been expecting. Attention will turn to domestic events this week kicking off with July trade data scheduled for release today.

- We expect a range today in the NZD/USD rate of 0.7080 to 0.7145

:: Majors: The Japanese Yen weakened across the board on Friday night as safe-haven demand was eroded after a speech in the United States by Federal Reserve Chairman Ben Bernanke who pledged to safeguard the economic recovery. The big dollar opens at 85.33 up from 15-year lows as Mr Bernanke commented that he expects a "modest pace" of economic growth and that the FOMC is prepared to provide further "accommodation" if needed. Compared to the pre-data hype, there was only a muted reaction on currency markets to second quarter GDP in the U.S. which came in at 1.6 per cent. Most economists had forecast growth of 1.4 per cent for the period April through June. University of Michigan confidence data came in at 68.9 for August which was lower than the previous month. Meanwhile, the Euro opens little changed at 1.2729.

:: Data Releases:
AUD: New Home Sales, July
CAD: Current account, Q2
EUR: Euro Zone Consumer Confidence, August
GBP: No Data Today
JPY: No Data Today
NZD: Trade Balance, July
USD: Personal Income, July

:: Australian Dollar: The Conference Board Leading Economic Index for Australia rose 0.1% in June 2010 however private capital expenditure unexpectedly fell -4% from the previous quarter causing the Aussie to dip momentarily to 0.8830 US Dollars midday in Asia. Other than this minor stumble the Aussie Dollar remained range bound between 0.8850-0.8900 versus the US Dollar. Improved risk sentiment saw the Aussie rally briefly to 0.8915 against the US Dollar before being pushed back to 0.8852. This morning the Aussie opens at 0.8860.

- We expect a range today in the AUD/USD rate of 0.8825 to 0.8900

:: Great Britain Pound: The Cable rally failed to reach 1.5600 against the US Dollar despite improved German consumer confidence after upbeat risk flows from equities fizzled. UK retailers reported sales volumes rose by 35pts from 33pts in July exceeding expectations of a 23pt gain. The greater than expected sales figures could not prevent the Sterling from sliding down to 1.5502 following better than expected jobless data from the US. The Pound rebounded; again making an attempt at 1.5600 US Dollars amid speculation policy makers in the US will announce further easing measures. The Pound opens today at 1.5524 US Dollars, 1.7528 Aussie and 2.2083 Kiwi.

- We expect a range today in the GBP/AUD rate of 1.7480 to 1.7535

:: New Zealand Dollar: The New Zealand Dollar rose against all 16 of its most-traded counterparts, gaining for the first time in three days versus the greenback, following speculation Japanese policy makers will intervene to halt the Yen’s advance. The Kiwi reached for 0.7100 US Dollars offshore after it was revealed US jobless claims had fallen by 31,000 from previous week. However fears of a double dip recession in the US remain ahead of Fed Chairman Bernanke’s speech this evening in which investor’s widely expect to point towards further stimulus measures. The kiwi opens today at 0.7030 US Dollars.

- We expect a range today in the NZD/USD rate of 0.7000 to 0.7055

:: Majors: German GFK consumer confidence rose to its highest level in more than 2 years hitting 4.1 up from 4.0 previously. The Euro rallied to 1.2745 against the US Dollar upon release of the news. The M3 money supply printed at 0.2% versus 0.4% indicating that credit remains weak, repelling the Euro from the 1.2750 area. Better than expected US weekly jobless claims sent the Euro tumbling to 1.2265 versus the Greenback before consolidating around 1.2700. Meanwhile the Yen weakened on speculation the departure to the U.S. of central bank chairman Masaaki Shirakawa will delay any plan to announce additional stimulus measures. This comes as more political uncertainty presents itself in Japan ahead of a leadership challenge Prime Minister Naoto Kan faces next month. Offshore the Greenback weakened against the Yen amid speculation the US Federal Reserve will announce a more active measure to boost the faltering US economy.

:: Data Releases:
AUD: No Data Today
CAD: No Data Today
EUR: German CPI, August
GBP: GDP, Q2
JPY: No Data Today
NZD: No Data Today
USD: GDP, Q2

:: Australian Dollar: With political uncertainty hanging over the Aussie dollar recent attempts at a rally have been short lived as resistance around the 89 cent mark put a lid during yesterdays Asian afternoon session. In offshore trade risk aversion persisted as U.S housing data came in at 10 year lows and equity markets fell. The bearish sentiment hurt the AUD/USD which fell below recent support at 0.8840 to trade within a whisker of the 88 cent mark and opens this morning at 0.8815. AUD/JPY selling also weighed on the local unit with early morning exchange at 74.10 ahead of critical support around the 73 level.

- We expect a range today in the AUD/USD rate of 0.8785 to 0.8875

:: Great Britain Pound: Disappointing U.K Mortgage approval data weighed on the Pound Sterling in early offshore trade however after several attempts support at 1.5370 held against the Greenback. USD weakness emerged during the North American morning session providing a boost for GBP/USD which rallied a big figure to 1.5470. However the move was relatively short lived as investors flocked back to the safety of the U.S dollar with risk aversion fears persisting to send the Cable back to this morning’s open at 1.5405. The GBP/AUD cross rate opens higher this morning thanks mainly to a weaker Aussie dollar exchanging at 1.7450 with major technical resistance looming ahead of 1.7550.

- We expect a range today in the GBP/AUD rate of 1.7400 to 1.7525

:: New Zealand Dollar: With many investors expecting the RBNZ to lift official interest rates at the next meeting yesterday’s Q3 two year inflation expectations release caught the markets attention. The result came in at 2.6% and below the previous 2.8% reading and the Kiwi sold off in local trade to test the psychological 70 cent level. With poor U.S economic data released overnight the Greenback initially weakened, sending the NZD/USD back up to 0.7080. The move was short lived however as risky assets such as equities declined sharply wiping out the gains. This morning sees the NZD exchanging at 0.7028 after posting an early morning low of 0.6990 against the USD.

- We expect a range today in the NZD/USD rate of 0.6975 to 0.7075

:: Majors: USD/JPY finally broke out of its recent range crashing through 15 year lows and support at 84.70 to exchange as low as 83.60 overnight. With Japanese authorities failing to announce any measures aimed at curbing the Yen’s strength the JPY continued to rally buoyed by increasing risk aversion. In a sign that the U.S industrial sector is performing well the Richmond Fed Manufacturing survey released overnight beat expectations with a reading of 11 above forecasts for a drop from 16 to 8. However it was U.S existing home sales that grabbed the headlines as it plunged 27.2% in July, far worse result than economist forecasts for a fall of around13% for the month. The news sent North American equity markets lower with the Dow Jones finishing the session 1.3% in the red. The big dollar regained some lost ground to open this morning at 83.95 against the Yen ahead of todays Japanese Trade Balance whilst in trade with the Euro it opens relatively unchanged at 1.2625.

:: Data Releases:
AUD: Jun Conference Board Leadign Index & Q2 Construction Work Done
NZD: No Data Expected Today
USD: Jul Durable Goods & Jul New Home Sales
GBP: No Data Expected Today
EUR: Aug German IFO Business Climate
JPY: Jul Trade Balance & Jul Corporate Services Price Index

:: Australian Dollar: Political uncertainty has pushed the Australian Dollar to open this morning at 0.8860 against the US Dollar, sliding as much as 0.8%. The Australian Federal election, for the first time in 70 years, has failed to deliver a majority government. Currently the Australian Labour Party has 70 seats out of 150 while opposition Leader Abbott’s Liberal-National coalition has 72, forcing both Leaders to open negotiations with independent lawmakers to form a minority government. The prospect of a less stable government and the possible drift to less friendly business policies will certainly weigh down investor opinion as the two major parties undergo talks.

- We expect a range today in the AUD/USD rate of 0.8825 to 0.8900

:: Great Britain Pound: Following Thursday’s surprisingly strong UK retail sales figures the British Pound continued to drift lower as investors sold off risk. The Sterling fell more than 1 cent to 1.5463 US offshore after reaching 1.5596 US early in Asia. Political strife may be stirring once again in the UK with Conservative ministers brushing off reports of emerging rifts within the coalition as spending cuts loom. The Cable regained a foot hold following some disappointing US economic data trading sideways around 1.5530 US. This morning the Pound opens at 1.5537 US Dollars. Meanwhile, the hung parliament in Australia has seen the Sterling open stronger against the Aussie at 1.7511 and buying 2.2020 Kiwi.

- We expect a range today in the GBP/AUD rate of 1.7480 to 1.7535

:: New Zealand Dollar: The Kiwi remained capped at 0.7080 US Dollars during Asia. Despite PPI input for the previous quarter pleasantly surprising investors on Thursday the Kiwi was weighed down by political uncertainty of its Tasman neighbour. After a knife-edge election on Saturday it''s unclear who will govern Australia, as the major parties remain in a deadlock for power. Investors selling out of Australia also left the Kiwi behind. The Kiwi slid more than 2% to 0.7000 versus the Greenback overnight. This morning the Kiwi opened at 0.7047 against the Big Dollar

- We expect a range today in the NZD/USD rate of 0.7020 to 0.7070

:: Majors: The Euro dropped for the second week in a row against the Greenback as weaker economic reports from Japan and the US continued to heighten risk aversion, dampening investor appetite. Offshore the Euro opened buying 1.2831 US before falling more than 2% to 1.2664, its lowest level since July 15th. Meanwhile European stocks posted their largest decline in 7 weeks. Japanese bonds gained for a second week as evidence global growth is slowing builds. The US Dollar weakened to 85.18 Yen early in Asia while the Bank of Japan continues to assess the economic impact of the Yen’s rise to 15 year highs. The USD climbed to 85.80 Yen offshore in the lead up to the Philly Fed’s manufacturing index which was widely expected to increase from 5.1 to 7.1. The resulting decline of -7.7 showing an outright contraction in US demand reduced the US to 85.60 Yen.

:: Data Releases:
AUD: No Data Today
CAD: No Data Today
EUR: German PMI, August
GBP: No Data Today
JPY: No Data Today
NZD: No Data Today
USD: Chicago Fed National Activity Index, July

:: Australian Dollar: The Australian Dollar opens lower today against the greenback at 0.8980. The Aussie moved lower during yesterday’s domestic session after wages data provided further evidence the Reserve Bank of Australia is likely to leave rates on hold. In what was a fairly lacklustre session, the local unit retreated towards 0.9020 as total hourly rates rose a modest 0.8 per cent in the June quarter for an annualised rise in the wage cost index of 3.0 per cent. Offshore, support gave way around the US90 mark which saw the unit trade as low as 0.8970 as BHP Billiton upped their bid by $1bio for Potash Corp, therefore pressuring the Aussie and strengthening the Canadian Dollar.

- We expect a range today in the AUD/USD rate of 0.8940 to 0.9000

:: Great Britain Pound: Pound Sterling recovered from a three-week low overnight of 1.5497 after minutes of the Bank of England’s last meeting revealed that no policy makers voted to step up bond purchases. The monetary policy committee also voted 8 – 1 in favour of keeping the benchmark interest rate at an all time low of 0.5 per cent. Against the greenback the pound opens at 1.5591 in the lead-up to tonight’s July retail sales data in which the market is expecting slower growth. Meanwhile, the pound is stronger against the Australian Dollar (1.7350) and weaker against the New Zealand Dollar (2.1840).

- We expect a range today in the GBP/AUD rate of 1.7300 to 1.7365

:: New Zealand Dollar: The New Zealand Dollar traded sideways during Wednesday’s local session between US71 cents and 0.7120 due to a lack of leads both domestically and in the region. Investors continued to favour risk early in the offshore time zone taking the kiwi to a high of 0.7191 before tracking a weaker Euro down towards 0.7150. The unit opens today at 0.7135 ahead of local economic data in the form of consumer confidence and credit card spending. The kiwi has recovered somewhat against the Australian Dollar bouncing from three-and-a-half month lows of 0.7850 to this morning’s opening level of 0.7940.

- We expect a range today in the NZD/USD rate of 0.7115 to 0.7150

:: Majors: The Euro received a boost early in the session hitting an overnight high of 1.2920 after European construction output rose the most in three months. Led by a rebound in Spain, construction in the 16-nation euro region increased 2.7 per cent from the previous month. The currency gains were short-lived however and the Euro succumbed to another bout of Yen strength. The Euro is trading near 6-week lows versus the Japanese Yen (109.78) and opens today against the U.S. at 1.2850. Meanwhile, the greenback fell as low as 85.18 against the Yen before reversing some of the losses as U.S. equities moved back into positive territory late in the session. A positive sales outlook from retail giant Target provided a late boost to equity market sentiment which filtered through to the big dollar (85.42).

:: Data Releases:
AUD: Average Weekly Earnings
CAD: No Data Today
EUR: German Producer Prices, July
GBP: Retail Sales, July
JPY: All Industry Activity Index, June
NZD: Producer Prices, Q2
USD: Philapelphia Fed Manufacturing Survey, August

:: Australian Dollar: Despite a benign interest rate outlook for the near-term, the Australian Dollar picked up some lost ground towards US90 cents during local trade on Tuesday. The minutes of the Reserve Bank of Australia’s most recent meeting did not contain any surprises and reiterated the economic outlook is evenly balanced. Inflation is forecast to bottom out at 2.75 per cent before rising to the top end of the target band (3.00 per cent) as growth picks up. Having said all of this, the next move in interest rates is still likely to be up, therefore helping to underpin the local currency. Not to mention higher gold this morning (US$1,225.50/oz) and stronger equity markets across Europe and the U.S. overnight which has boosted sentiment. The Aussie opens today at 0.9050.

- We expect a range today in the AUD/USD rate of 0.8990 to 0.9080

:: Great Britain Pound: As expected, growth in U.K. consumer prices slowed in July to 3.1 per cent compared to 3.2 per cent in June. The pound was little-changed after the report trading at 1.5659 but moved lower later in the session as the inflation data pours cold water on any prospect of a near-term interest rate rise in the U.K. The pound opens lower today against the greenback at 1.5580. Tonight, the Bank of England is scheduled to release the minutes of its last meeting. Meanwhile, the pound is sharply lower against both the Australian Dollar (1.7210) and the New Zealand Dollar (2.1880).

- We expect a range today in the GBP/AUD rate of 1.7140 to 1.7230

:: New Zealand Dollar: The New Zealand found some much-needed support around the 0.7040 area during the local session on Tuesday as traders speculated last week’s greenback rally was a shade overdone. Stronger gold and commodity prices also helped underpin the local unit which clawed its way back toward US71 cents. During the offshore session, the unit moved to an overnight high around 0.7140 as equity markets rallied across Europe and the United States, boosting sentiment. However, the kiwi continues to be outperformed by its trans-Tasman rival and opens today at fresh 15-week lows around 0.7860.

- We expect a range today in the NZD/USD rate of 0.7070 to 0.7145

:: Majors: The Japanese Yen weakened marginally overnight as stock market gains across Europe and the United States reduced safe-haven demand. The greenback opens at 85.50 amid continued speculation Japanese policy-makers will intervene to curb Yen strength if it breaks the 15-year high of 84.73 reached on August 11, 2010. The Euro rose as government debt auctions in Ireland and Spain were well received by the market easing concerns the two nations will struggle to contain their budget deficits. The 16-nation currency opens today at 1.2880, compared to 1.2825 this time yesterday. Meanwhile, economic data released in the United States overnight showed wholesale costs increased in July for the first time in four months with the Producer Price Index (PPI) rising 0.2 per cent. Industrial production also rose 1 per cent in July.

:: Data Releases:
AUD: Westpac leading index, June; Wage cost index, Q2
CAD: No Data Today
EUR: Euro Zone Construction output, June
GBP: Bank of England meeting minutes
JPY: Leading Index, June
NZD: No Data Today
USD: No Data Today

:: Australian Dollar: Poor growth data released in Japan yesterday was enough for investors to once again eschew riskier assets which saw the Australian Dollar dip towards 0.8860 early in the Asian session. A decline in local motor vehicle sales for July (-2.6 per cent) and weaker equity markets in the region also did nothing to help the Aussie’s cause. The story was only marginally different offshore with the unit steadying and moving back over 0.8950 on the back of stronger gold and commodities. Gold is at a 6-week high of US$1,224.70/oz. Meanwhile, the AUD opens today at 0.8972 against its U.S. counterpart. Today’s release of minutes from the Reserve Bank’s August meeting will be closely watched by currency markets.

- We expect a range today in the AUD/USD rate of 0.8900 to 0.9000

:: Great Britain Pound: Pound Sterling opens marginally higher today against its U.S. counterpart at 1.5661. Greenback weakness across the board took the pound from a low of 1.5534 up to an intraday high of 1.5702 in what was otherwise a lacklustre session. The pound remains vulnerable over planned U.K budget cuts which may cool the pace of economic recovery. Meanwhile, the pound opens weaker against the Australian Dollar at 1.7420 but is stronger against the New Zealand Dollar at 2.2140.

- We expect a range today in the GBP/AUD rate of 1.7400 to 1.7470

:: New Zealand Dollar: The New Zealand Dollar opens largely unchanged against the greenback today at 0.7070. Risk aversion continues to weigh on the currency after weaker-than-expected growth data out of Japan yesterday sparked another round of selling in Asian equity markets and high-yielding currencies. The kiwi hit an intraday low of 0.6990 and was not aided by a local services sector report. Reflecting weaker sales, the BNZ-Business NZ performance of services index fell 4.6 points in July to 50.5. Meanwhile, the kiwi is weaker against the Australian Dollar and opens today at 0.7874.

- We expect a range today in the NZD/USD rate of 0.7020 to 0.7110

:: Majors: The big dollar has continued its dramatic slide against the Japanese Yen and opens today at 85.30. It touched a 15-year low last week at 84.73. Data released yesterday showed Japanese gross domestic product rose at an annualised pace of 0.4 per cent in the three months to June 30, well below economists’ forecasts, fuelling safe-haven demand amid further signs the global economy is faltering. The greenback also slid against the Euro and opens today at 1.2825. In overnight trade, the 16-nation currency moved between a low of 1.2732 and a high of 1.2870. The safe-haven rally was not restricted to the Japanese Yen as the Swiss Franc also rose across the board, along with base metals. Gold is trading at a 6-week high of US$1,224.70/oz.

:: Data Releases:
AUD: RBA board meeting minutes
CAD: No Data Today
EUR: Euro Zone Current Account, June
GBP: CPI, July
JPY: No Data Today
NZD: No Data Today
USD: Producer Price Index, July

:: Australian Dollar: The Australian Dollar opens a shade lower on Monday at 0.8928 as risk aversion keeps a lid on high-yielding currencies. Whilst the Aussie re-captured US90 cents throughout local trade on Friday, the gains were short-lived as the greenback strengthened across the board amid speculation the Bank of Japan may intervene to curb gains in the Yen which is hindering the nation's recovery. Economic data in the United States on Friday also spooked traders with U.S retail sales in July climbing at 0.4 per cent which was below market expectations and added further evidence, if any was needed, that global growth is stalling. There is no major local economic data scheduled for release today however tomorrow sees the all-important release of the minutes from the RBAs August monetary policy meeting.

- We expect a range today in the AUD/USD rate of 0.8900 to 0.8965

:: Great Britain Pound: Pound Sterling opens largely unchanged against the greenback on Monday at 1.5590. The currency hit an intraday high of 1.5678 early in the session but fell away after local data revealed there was very little change in U.K house prices in July. Recently, the Bank of England pledged to maintain emergency stimulus for the economy and keep interest rates at record low levels. Meanwhile, the pound opens higher against both the Australian Dollar (1.7460) and the New Zealand Dollar (2.2070).

- We expect a range today in the GBP/AUD rate of 1.7425 to 1.7500

:: New Zealand Dollar: Despite stronger-than-expected retail sales data released on Friday, the kiwi is back under US71 cents and opens the new week at 0.7070 as risk aversion keeps a lid on high-yielding currencies. Retail sales rose by 1.3 per cent in June quarter which was better than expected and the largest rise since the March quarter of 2007. The data gave the kiwi a strong boost above 0.7100 during local trade before reaching a 24-hour zenith of 0.7182 during early European trade. However, the greenback strengthened across the board as U.S. economic data continues to point to a slowdown in global growth pushing investors away from riskier assets.

- We expect a range today in the NZD/USD rate of 0.7020 to 0.7110

:: Majors: The Euro opens the new week lower at 1.2760 despite strong German economic growth data released on Friday. The 16-nation currency rallied early in the session to a high of 1.2905 after it was revealed that Germanys economy powered ahead in the second quarter at a rate of 2.2 per cent. The gains on the currency were short-lived however as Euro Zone growth announced later in the session came in at a rather more subdued figure of 1 per cent as consumer confidence and domestic demand remain low. In the United States, University of Michigan index of consumer confidence rose in August to 69.6 whilst U.S. retail sales climbed by 0.4 per cent in July which was lower than market expectations. The greenback strengthened across the board and most notably against the Japanese Yen as investors move away from bets on further Yen gains. The big dollar opens today at 86.17, not far beneath Fridays high of 86.36 amid speculation of Bank of Japan intervention.

:: Data Releases:
AUD: New Motor Vehicle Sales, July
CAD: No Data Today
EUR: Euro Zone CPI, July
GBP: No Data Today
JPY: GDP, Q2
NZD: Performance Services Index, July
USD: Empire Manufacturing, August

:: Australian Dollar: A large drop in Australian consumer sentiment as measured by the Westpac-Melbourne Institute survey pushed the Aussie dollar below the 91 cent handle in local trade yesterday. Adding to the selling pressure were fears of a slowdown in Asian growth with lower than forecast Chinese economic data seized upon by early offshore investors. After initially holding around 0.9015 the AUD/USD pushed lower again during the North American session with an unexpected widening in the U.S Trade Deficit heightening risk aversion fears that began following the Fed’s announcement the previous evening. With U.S equity markets and commodity prices trading substantially lower investors dumped the Aussie dollar during early morning exchange to see it open on its lows back at 0.8940. Today sees the release of the important Australian employment report with general market consensus forecasting the economy to have added around 20k jobs and headline unemployment to remain at an impressive 5.1%.

- We expect a range today in the AUD/USD rate of 0.8850 to 0.9000

:: Great Britain Pound: The Pound Sterling collapsed in overnight trade as investors flocked to the safety of the Greenback and Yen amidst renewed fears of risk aversion. After opening in London at around 1.5800 against the Greenback the Pound hit an overnight low of 1.5615. The market ignored better than expected employment data out of the UK preferring instead to focus on the release of the Bank of England inflation report with the central bank announcing downward revisions to CPI and signalling the possibility for the need of more emergency stimulus. The news comes on the back of a similar downbeat assessment from the U.S Federal Reserve bank on Tuesday renewing fears of a global double dip recession. This morning sees the GBP/USD exchanging at 1.5640 whilst the cross rate opens at 1.7485, up from its overnight lows around 1.7350 thanks to a large fall in the Aussie dollar.

- We expect a range today in the GBP/AUD rate of 1.7380 to 1.7500

:: New Zealand Dollar: Resistance at 0.7210 capped attempts for the Kiwi to advance higher in Asia and Europe with the NZD/USD sliding lower throughout the overnight session. The Greenback was in high demand following concerns surrounding global growth and with offshore equity markets and commodity prices falling sharply overnight “high yielders” were punished. This morning sees the NZD open on its lows at 0.7125 against the USD ahead of the release of N.Z Food Prices and Manufacturing data whilst employment data across the Tasman is also likely to have an impact on sentiment in the region, albeit a short lived one.

- We expect a range today in the https://kariera.zulutrade.com/SignUp_Live.aspx

:: Majors: Risk aversion has reappeared on the horizon over the last 24 hours with several key events changing sentiment on financial markets. In essence fears of a global double dip recession have re-emerged following the U.S Federal Reserve banks dovish statement and the Bank of England following suit last night, downgrading growth forecasts for the U.K. Add to the mix disappointing Chinese data yesterday and the result has seen EUR/JPY weaken considerably, falling almost 3% from yesterdays Asian open around 112.50 to trade as low as 109.35 overnight. Movement in the cross rate dragged EUR/USD and USD/JPY lower with the latter trading below 85 and flirting with 15 year lows around 84.75. Adding to the fears surrounding an economic slowdown was last night’s U.S Trade balance data which showed a larger than forecast 7.9 billion USD widening in the deficit to 49.9 billion. This morning sees the big dollar open well supported at 85.25 and 1.2845 against the Yen and Euro respectively.

:: Data Releases:
AUD: Jul Employment Report
NZD: Jul Food Prices & Jul Performance of Manufacturing
USD: Weekly Jobless Claims & Fedspeak
GBP: No Data Expected Today
EUR: Jun Industrial Production
JPY: Jun Industrial Production, Jul Consumer Confidence & Jun Capacity Utilisation

:: Australian Dollar: The Aussie dollar traded lower yesterday dropping from 0.9160 to an Asian session low of 0.9105 following a disappointing NAB Business survey and Chinese Trade data which soured sentiment towards growth in the region. The major news however driving moves on currencies overnight was the U.S Federal Reserve bank meeting and the decision to reinvest funds into long term treasuries as a means to boost spending and spur growth. By doing this the central bank is in effect keeping borrowing rates low for “an extended period of time” as it reaffirmed in its release subsequent to the conclusion of the meeting. In what was a volatile offshore session the AUD/USD fell towards 0.9050 prior to the announcement only to rally sharply back to this morning’s open of 0.9135. The local unit is expected to remain volatile with today’s release of the Australian Westpac Consumer Sentiment survey and Chinese economic data in the form of CPI, PPI, Retail Sales and Industrial Production – all key indicators of the performance for the Asian and global economy.

- We expect a range today in the AUD/USD rate of 0.9080 to 0.9200

:: Great Britain Pound: With traders squaring short USD positions heading into the FOMC meeting overnight the market ignored a better than expected U.K Trade Balance to take GBP/USD lower from late Asian levels of 1.5800 to a low around 1.5710 in Europe. It was a different story however during North American trade with the Cable reversing rapidly to gain almost 1.3% and exchange at an overnight high of 1.5905 following the U.S Central Bank meeting with it delivering a downbeat assessment on the economy and taking measures to boost growth. This morning sees the GBP open at 1.5845 and 1.7355 against the U.S and Australian dollars respectively.

- We expect a range today in the GBP/AUD rate of 1.7280 to 1.7420

:: New Zealand Dollar: After threatening to trade back above the 73 cent level in early trade yesterday the Kiwi followed the lead of the Aussie dollar lower throughout the Asian session to enter offshore trade near the 72 cent handle. The main catalysts for the move lower were some nervous USD short covering ahead of the Fed meeting and deterioration in the Chinese Trade Balance which suggests a global economic slowdown is occurring. Certainly the U.S central bank thought it ought to act in order to spur growth in North America at its meeting overnight where it announced their intention to reinvest funds into treasuries in order to keep borrowing rates low for an extended period. The news triggered a wave of Greenback weakness which saw the NZD/USD bounce back a cent from its earlier lows at 0.7165 to a high of 0.7265 before drifting slightly lower to open at 0.7235 this morning. With no N.Z data scheduled until tomorrow direction for the NZD is likely to come from the release of several key Chinese economic indicators today.

- We expect a range today in the NZD/USD rate of 0.7200 to 0.7300

:: Majors: The JPY strengthened somewhat in Asia yesterday following the conclusion of the Bank of Japan meeting and comments from the banks Governor Shirakawa who watered down concerns surrounding the effect of a strong Yen on the economy’s performance. Although they are “well aware” the recent strength in the currency poses a downside risk for “corporate sentiment” he went on to add that they have to “assess the currency’s effect on the economy in a well-balanced manner”. USD/JPY fell from an Asian high of 86.05 to exchange as low as 85.62 in early London before a massive short squeeze heading into the much anticipated FOMC meeting. The big dollar peaked at 86.23 prior to the announcement with the U.S Federal Reserve bank releasing a rather sombre statement whilst also announcing measures to boost growth for the first time since March 2009 sending the Greenback lower. Following the news the USD retreated to a low of 85.15 against the Yen whilst in exchange with the Euro it fell sharply from 1.3095 to 1.3230. Looking ahead the U.S dollar is likely to continue to trade heavily with treasury yields remaining under pressure as a consequence of the announcement to reinvest principal payments on mortgage backed securities into long term bonds.

:: Data Releases:
AUD: Aug Westpac Consumer Confidence
NZD: No Data Expected Today
USD: Jun Trade Balance & Jul Monthly Budget Statement
GBP: BoE Inflation Report, Jul Claimant Count, Jun 3mth ILO Unemployment Rate & Jul Jobless Clains Change
EUR: No Data Expected Today
JPY: Jul Machine Orders & Jul Domestic Corporate Goods Price Index
CNY: Jul CPI, Jul PPI, Jul Retail Sales & Jul Industrial Production

:: Australian Dollar: A larger than forecast 3.9% decline in Australian home loans during June and disappointing ANZ job advertisements data halted the progress of the Aussie dollar in Asia yesterday as it entered offshore exchange relatively unchanged from the weeks open at 0.9185. Better than expected European data saw the Greenback weaken in early London trade taking the AUD/USD back above the 92 cent handle however the move proved to be temporary as investors pared back short USD positions ahead of this evenings FOMC meeting. This morning sees the local unit open near its overnight lows at 0.9160 ahead of today’s NAB Business Confidence survey and the Bank of Japan meeting with investors keeping a close eye on developments in the USD/JPY for more direction on the Greenback and currency markets in general during the Asian session.

- We expect a range today in the AUD/USD rate of 0.9120 to 0.9220

:: Great Britain Pound: Direction for the Pound Sterling during overnight trade came from better than expected German data and movement in the Greenback. The Cable initially traded higher on the back of an early London rally in EUR/USD however resistance ahead of the 1.6 level capped any further advances for the second time since Friday night’s attempt to break through this level. This morning sees the Pound open back at 1.5900 against the Greenback with important data releases out of the UK during the second half of this week and central bank meetings in Japan and the U.S today to determine whether or not the GBP can break above the psychological 1.6 level. Against the Aussie dollar it opens at 1.7350 after having traded in an overnight range between 1.7320 and 1.7430.

- We expect a range today in the GBP/AUD rate of 1.7300 to 1.7450

:: New Zealand Dollar: After opening the weeks trade on its highs around 0.7330 yesterday the Kiwi drifted lower to exchange at an overnight low of 0.7270 against the Greenback and opens this morning at 0.7285. With only second tier N.Z data releases early in the week the NZD/USD fortunes in the near term rest heavily on developments in the U.S as markets remain on tenterhooks ahead of this evenings Federal Reserve Bank meeting. The Greenback has weakened considerably in recent weeks as economic data in North America continues to print below forecasts and the expectations building that the central bank will need to embark on quantitative easing in order to spur demand. The big dollar has fallen against most majors with the NZD being one of the beneficiaries of the move. There are some risks for the Kiwi on the horizon however with the possibility of a correction to the USD weakness later in the week as Retail Sales, Inflation and Consumer Sentiment data out of North America is released.

- We expect a range today in the NZD/USD rate of 0.7225 to 0.7325

:: Majors: After threatening to break below the 85 level and trade to 15 year lows on Friday night the USD/JPY staged a recovery on Monday to open this morning on its highs at 85.90. Comments from the Japanese Finance Minister Noda who warned against the economic impact of a strong yen coupled with the release of a lower than expected trade balance out of Japan weakened the JPY ahead of today’s BOJ meeting. Although the central bank is not expected to move on interest rates the market will be eyeing the ensuing press conference for more rhetoric surrounding “undesirable” exchange rate fluctuations and the possibility of intervention at some point. In Asia today the USD/JPY is likely to continue to squeeze higher as speculators square up short USD/JPY positions heading into this evenings much anticipated U.S Federal Reserve Bank meeting. The likelihood of an announcement of any quantitative easing has diminished somewhat however it is likely that the Fed will announce some downward revisions to GDP and deliver a more sombre assessment of the economy which could be enough to cap any further attempts at a rally in the USD/JPY between 86.50 and 87.00 over the next 24 hours. The big dollar also opens higher at 1.3225 against the Euro bouncing back after dropping to 1.3308 following the announcement of an improvement in the German Trade Balance and the Sentix Investor Confidence survey.

:: Data Releases:
AUD: Jul NAB Business Confidence
NZD: No Data Expected Today
USD: FOMC Meeting
GBP: Jun Trade Balance
EUR: German Jul Forecast CPI
JPY: BoJ Meeting & Q2 Housing Loans

:: Australian Dollar: Friday’s release of the RBA Monetary Policy statement swayed little from the recent central bank rhetoric with a relatively neutral document. In local trade the Aussie dollar traded sideways between 0.9135 and 0.9155 for the majority of the day but came to life in offshore exchange peaking above the 92 cent handle before finishing the week marginally below the big figure at 0.9190. Broad based USD selling following a disappointing employment report out of North America was the main catalyst for the move with the week ahead likely to see more downside pressure applied to the Greenback following the bleak outlook for the U.S economy. In Australia today we see the release of ANZ job advertisements and home loan data with the main local attraction this week being Thursday’s official employment report.

- We expect a range today in the AUD/USD rate of 0.9150 to 0.9250

:: Great Britain Pound: The Pound Sterling bounced back from an early London sell off to 1.5835 following lower than forecast July Manufacturing and PPI data to trade within a whisker of the psychological 1.6 level against the Greenback. Despite the initial negative reaction to the U.K news USD selling after the announcement of poor non-farm payroll data stateside spurred demand for Pounds. This morning sees the GBP open at 1.5985 and 1.7385 against the U.S and Australian dollars respectively.

- We expect a range today in the GBP/AUD rate of 1.7300 to 1.7480

:: New Zealand Dollar: In what was a very volatile finish to the week the Kiwi rallied from 0.7280 to 0.7345 with the U.S employment report disappointing the market. The non-farm sector shed a larger than forecast 131k jobs in July triggering USD selling across the majors. The first half of the week ahead is very light on the N.Z economic calendar front so moves on the currency are likely to be dictated by developments in the U.S with the FOMC meeting on Tuesday. On the domestic front the major release comes late in the week in the form of Friday’s Retail Sales report.

- We expect a range today in the NZD/USD rate of 0.7285 to 0.7385

:: Majors: A drop in German Industrial production fell 0.6% in June, well below forecasts for gains of around 0.5% dragging the Euro lower during early offshore trade on Friday. EUR/USD drifted down from 1.3205 to hit a low of 1.3155 however the markets were focused on the U.S jobs report with the Euro holding firm at 1.3180 ahead of the release. The announcement triggered a wave of USD selling pushing EUR/USD back above 1.33 for the first time since the 3rd of May and USD/JPY down to test the all important 85 level for the first time since November 2009. The Non-Farm payrolls report showed the loss of 131k jobs in July, more than double economist forecasts for a loss of around 65k with the unemployment rate which measures the percentage of those actively seeking work holding steady at 9.5%. With the U.S Federal Reserve bank meeting this week the market will be closely scrutinising the central banks accompanying statement for the announcement of any measures aimed at curbing the economic downturn and spurring growth in the region.

:: Data Releases:
AUD: Jun Home Loans, Jun Investment Lending & Jul ANZ Job Ads
NZD: No Data Expected Today
USD: No Data Expected Today
GBP: No Data Expected Today
EUR: Jun German Trade Balance & Aug Euro-Zone Sentix Investor Confidence
JPY: Jun Current Account & Jun Trade Balance

:: Australian Dollar: Demand for higher yielding assets dampened on concern China’s bank stress tests will reveal losses, softening the Australian Dollar during Asia. The Aussie traded mostly between 0.9130 – 0.9160 against the US Dollar before falling from a near-three-month high against the greenback as a drop in U.S. stocks discouraged demand for currencies related to economic growth. The number of Americans filing for unemployment benefits unexpectedly rose, intensifying speculation the Federal Reserve will introduce stimulus measures next week at its next policy meeting. The news sent the Aussie down to an intra-day low of 0.9115 US. The Australian Dollar opens this morning firmer at 0.9150 US ahead of today’s RBA monetary policy statement.

- We expect a range today in the AUD/USD rate of 0.9120 to 0.9175

:: Great Britain Pound: Sterling opens lower for the third day against the Greenback at 1.5886. The Bank of England’s decision to keep interest rates at a record low weakened the Pound against the Greenback. Committee members voted to keep key interest rates at 0.5%, a position they have maintained since March 2009.The gathered committee also voted not to modify the stocks of asset purchases, currently at £200 billion. The British currency climbed to 1.5923 against the big dollar in the lead up to the central bank’s official cash rate announcement. The Cable retreated towards 1.5820 from its intra-day high losing strength amid a decline in stocks in Wall Street as US continuing jobless claims exceeded estimates. Meanwhile the Pound opens lower against the Aussie at 1.7360 and 2.1777 against the Kiwi.

- We expect a range today in the GBP/AUD rate of 1.7315 to 1.7380

:: New Zealand Dollar: This morning the Kiwi opens buying 0.7294 US Dollars. The Kiwi sank 0.8% to 0.7274 US immediately following worse-than-expected unemployment figures. New Zealand’s unemployment rate surged back to a 10 year high jumping to 6.8% in the second quarter. Economists has expected jobless rates to increase to 6.4% after is biggest decline last quarter. The surprisingly large figure added to evidence New Zealand’s economic recovery is losing momentum and will put pressure on the RBNZ to stop increasing interest rates. Overnight the Kiwi slumped to 0.7246 against the US Dollar following disappointing US jobless reports.

- We expect a range today in the NZD/USD rate of 0.7290 to 0.7340

:: Majors: The US Dollar slumped towards 8 month lows against the Japanese Yen as jobless claims climbed by 19,000 to 479,000 in July. The increase in unemployment claims was a surprise with most expecting a decline to 456,000. The report intensified speculation the Federal Reserve will introduce stimulus measures next week at its next policy meeting sending the USD down to 85.70 against the Yen as traders turned to the safety of the Japanese currency. The Euro was firmer against the Greenback after falling as low as 1.3121 versus the US Dollar, late in Asian trade. Ahead of the European Central Bank’s rate decision the Euro advanced to 1.3220 US. ECB President Jean Claude Trichet reiterating his message that monetary policy remains appropriate. With nothing new to offer, Trichet’s comments sent the Euro below 1.3200 US.

:: Data Releases:
AUD: RBA Quarterly Monetary Policy Statement
CAD: Employment Rate, July
EUR: German Industrial Production, July
GBP: NIESR GDP Estimate, July
JPY: Leading Index, June
NZD: No Data Today
USD: Non Farm Payrolls, Unemployment Rate, July

:: Australian Dollar: The Australian Dollar fell below 0.9100 US earlier in the day following an unexpected decline of -3.3% in June building approvals. Expectations had been for an increase of approximately 2.1%. Australian retail sales also disappointed printing below estimates of 0.4%, increasing only 0.2%. As expected the RBA kept the official cash rate unchanged. A statement from the RBA indicated the reserve bank may take a more neutral stance in the foreseeable future ‘with growth likely to be close to trend, inflation close to target and the global outlook remaining somewhat uncertain’ further weakened the Aussie. Moving offshore the Aussie erased its losses creating a new 3month high at 0.9150 US after another round of subpar US economic data encouraged investors to dump the Greenback. This morning the Aussie opens at 0.9131 against the US Dollar.

- We expect a range today in the AUD/USD rate of 0.9075 to 0.9150

:: Great Britain Pound: The Pound rose against the Big Dollar for the ninth consecutive day piercing 1.5960 overnight. Northern Rock reported its first profit boosting sentiment in the UK financial system giving investors the confidence for stronger Sterling trade despite a significant decline in the nation’s construction sector. Given that the British economy is showing signs of recovery former Bank of England Deputy Governor John Gieve commented policy makers shouldn’t loosen monetary policy further or increase stimulus measures. This morning the Pound is buying 1.5945 US, 1.7465 Aussie and 2.1740 Kiwi.

- We expect a range today in the GBP/AUD rate of 1.7350 to 1.7550

:: New Zealand Dollar: The Kiwi dipped near 0.7300 following Australia’s interest rate announcement. The neutral tones from the RBA indicated rates may hold at 4.25% while Australia’s growth remains ‘on trend’. The Kiwi fell below 0.7300 late in Asia before recovering offshore. Positive news from the UK wetted investor risk appetite for growth currency as investors turned away from the US haven amid growing evidence of a failing US economy. The Kiwi opens this morning at 07330 against the Greenback.

- We expect a range today in the NZD/USD rate of 0.7275 to 0.7375

:: Majors: The Japanese Yen strengthen overnight to an 8 month high against the Greenback over concerns the Fed may be considering another round monetary stimulus to boost the frail US economy. The Big Dollar was sent down to 85.66 Yen, the lowest level since November 27th. Japanese Finance Minister Noda expressed little opposition to the current price action noting exchange rates should in principle be set by the market. Meanwhile US pending home sales dropped 2.6 percent in June while personal income and spending remained stagnant. The impact of fresh concerns for the US helped push the Euro higher despite European PPI falling short of expectations.

:: Data Releases:
AUD: Trade Balance
CAD: No data slated for release
EUR: Retail Sales; Final Services PMI
GBP: Halifax HPI
JPY: No data slated for release
NZD: No data slated for release
USD: ADP Non Farm Empolyment Change; Challenger Job Cuts

:: Australian Dollar: The Australian Dollar continues to benefit from a weaker greenback and opens this morning buying 0.9136. Hitting a 3 month high overnight, the Aussie rallied to 0.9145 against the Greenback as investors shrugged off weaker Chinese PMI data. Investors remained bullish following better than expected manufacturing figures in the Euro zone overnight. Although it was revealed yesterday that Australian PMI expanded to 54.4 in July from 52.9, new home sales were reported to be in the red falling -5.1%. The RBA is expected to keep interest rates steady at 4.25% in today’s meeting.

- We expect a range today in the AUD/USD rate of 0.9100 to 0.9175

:: Great Britain Pound: The Pound reached a 6 month high overnight against the US Dollar breaking above 1.5900 following signs the UK economy is recovering. British PMI expanded for the 10th month in a row printing above expectations of 57.1 coming in at 57.3 for July. Consistent upside surprises and rising UK equities led by gains in BHP Billiton and strong earnings from HSBC fuelled the aggressive rally as risk appetite improved throughout the evening. This morning the Sterling opens at 1.5890 US while buying 1.7400 Aussie and 2.1700 Kiwi.

- We expect a range today in the GBP/AUD rate of 1.7390 to 1.7440

:: New Zealand Dollar: The New Zealand Dollar benefitted from yesterday’s potent rally in risk making several attempts to break 0.7340. Appetite for the NZ dollar continued throughout the evening as relatively positive economic data from the US and the UK, and better than expected earnings announcements, lifted market sentiment. According to a Treasury report, exports to China and Australia and commodity prices are off-setting the nation’s weak consumer spending and housing demand keeping the Kiwi afloat. This morning the Kiwi opens buying 0.7320 US Dollars. Meanwhile, the Kiwi is steady against the Australian Dollar at 0.8015.

- We expect a range today in the NZD/USD rate of 0.7290 to 0.7345

:: Majors: Offshore, European manufacturing PMI improved 0.2 index points from a previous reading of 55.6 to the current 56.7, leaping over market expectations at 56.5. The news ignited a risk rally which sent the Euro to a 3 month high, barely missing the 1.32 US mark, as more positive news flowed from the US. Better than expected corporate earnings and manufacturing figures from the US drew less pessimistic comments from Fed Chairman Bernanke dampening demand for haven currencies. The Euro opened this morning steady at 1.3172 against the US Dollar. Meanwhile, the big dollar has moved away from recent 8-month lows and opens in Sydney at 86.40.

:: Data Releases:
AUD: Building Approvals, Retail Sales, June; RBA Interest Rate Decision
CAD: No Data Today
EUR: EZ PPI, June
GBP: Halifax House Prices, PMI Construction, July
JPY: No Data Today
NZD: Average Hourly Earnings, Q2
USD: Personal Consumption Expenditure, June

:: Australian Dollar: Greenback weakness across the board has helped put the Australian Dollar back over US90 cents during offshore trade on Friday and we open in Sydney this morning at 0.9050. The Aussie hit a 24-hour zenith of 0.9066 - just shy of a three-month high - after U.S. second quarter economic growth came in at 2.4 per cent. Soft data and high unemployment in the United States is taking its toll on the greenback, pushing the pound, Aussie, Euro and Yen to multi-month highs. Strong commodities and base metals prices are also supporting the local unit at the moment. Tomorrow, the Reserve Bank of Australia (RBA) meets to discuss monetary policy and rates are expected to remain on hold at 4.50 per cent. As usual, the market will be looking closely at the RBA's accompanying statement and if there is any hint of rates being at an "appropriate setting", the Aussie may come under pressure.

- We expect a range today in the AUD/USD rate of 0.9010 to 0.9080

:: Great Britain Pound: Greenback weakness across the board has helped to push the pound to fresh five-month highs which sees the currency open the new week at 1.5700. In the absence of any local economic data on Friday the pound hit a high of 1.5721 after news across the Atlantic revealed that U.S. economic growth had slowed to 2.4 per cent annual pace. It is likely to be a volatile week for Sterling with the Bank of England set to announce a decision on interest rates this Thursday. Rates are widely tipped to remain on hold at 0.50 per cent. Meanwhile, the pound opens higher against both the Australian Dollar (1.7350) and the New Zealand Dollar (2.1630).

- We expect a range today in the GBP/AUD rate of 1.7320 to 1.7380

:: New Zealand Dollar: The New Zealand Dollar opens higher against its U.S. counterpart on Monday at 0.7260. Despite the Reserve Bank of New Zealand recently hosing down the prospects of a series further moves in interest rates, the kiwi has been well supported after last weeks strong terms of trade result. Stronger commodities and a weak greenback are also underpinning the currency. During Fridays offshore session, the unit hit a 24-hour high of 0.7267 after U.S. economic growth came in weaker than expected pushing the greenback lower across the board. Despite the recent surge however, the kiwi is being outperformed by the Australian Dollar at the moment and opens today 0.8010.

- We expect a range today in the NZD/USD rate of 0.7220 to 0.7295

:: Majors: The big dollar moved beneath 86.00 against the Japanese Yen for the first time this calendar year after U.S. economic growth slowed in the second quarter. The greenback has lost 11 per cent on the Yen this year and hit an overnight low of 85.93 as a string of weak U.S. economic data releases continue to point to a very slow recovery and a sustained period of near-zero per cent interest rates. Gross domestic product came in at 2.4 per cent annual pace which was below most forecasts. Traders are now favouring investments in Japanese yen and Swiss francs. Meanwhile, the Euro opens stronger today at 1.3060 after hitting an overnight high of 1.3093 - just short of a three-month peak. The 16-nation currency has advanced more than 6 per cent over the last month as concerns have eased that the regions sovereign debt crisis would worsen and dampen global economic growth.

:: Data Releases:
AUD: Bank Holiday, NSW
CAD: No Data Today
EUR: EZ Purchasing Managers Index, July
GBP: Purchasing Managers Index, July
JPY: Vehicle Sales, July
NZD: ANZ Commodity Price, July
USD: ISM Manufacturing, July