Australia: The AUD has fallen almost 1½ cents after hitting a five-month high yesterday morning to be currently trading around USD0.9250.

This is on the back of some poor local housing data and also comments from the RBA about the likelihood of further rate rises.

Data released yesterday showed a decline in housing finance approval for February, the fifth consecutive monthly decline.

This has caused some concern to investors indicating that the housing market may weaken further.

Yesterday during a senate committee inquiry in Sydney the RBA assistant Governor Guy Debelle said that in relation to interest rates we're moving back to something around average levels, which is not far from where we are now.

This reduced expectations of further interest rate rise's in the coming months with the likelihood of a hike in May now priced in at 25%.

Today we will see the NAB business confidence survey for March which will give an indication as to the effects that the interest rate increases are having on the market.

Despite the recent tightening of monetary policy many are still expecting a positive result. Lending Finance data for February is also due to be released by the ABS.

Despite these releases we expect that the AUD will have a tight trading range due to a lack of top tier information.

Majors: Greece continues to dominate the international market news. The EUR/USD has retreated back from its highs yesterday to be trading around USD1.3600.

Despite the rescue package announced by the European Union over the weekend, many investors focused on the potential for further road blocks in the delivery of the support package for Greece.

Also influencing the EUR was concerns that sovereign debt in other European nations may disrupt the economic recovery in the region.

Tonight Greece are holding an auction of their 26 and 52 week bills so the market will be waiting to see whether demand has increased following the rescue package announcement.

This morning in the UK the British Retail Consortium released Retails sales results for March with sales rising sharply. Total sales rose 6.6% which compounds a positive 4.5% rise in February.

The rise can be attributed to the Easter sales since the Easter break was earlier this year. This is the sharpest rise since April 2006 and signals that the UK may be moving towards an economic recovery.

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