:: Australian Dollar: The Australian Dollar opens beneath US79 cents for the first time since May 29 amid further greenback strength overnight. As expected, trading was fairly muted yesterday thanks to the Queen's Birthday public holiday. However, the local unit did manage a high of 0.7984 as higher commodity prices provided support, though well off the eight-month high of 0.8263 hit briefly last Wednesday (June 3). The Aussie fell sharply during New York trade overnight all the way down to 0.7826 as investors eschewed the high-yielders and increased their greenback holdings.

- We expect a range today in the AUD/USD rate of 0.7800 to 0.7950

:: Great Britain Pound: The pound had a minor corrective rally against the US dollar overnight and opens on Tuesday morning at 1.6050. Markets do not cope well with political uncertainty and the pound suffered its biggest weekly loss in three months last week as Prime Minister Gordon Brown rearranged his cabinet amid calls for his resignation. Economic fundamentals may come back into focus tonight with the release of May house price data. Meanwhile, the pound has rallied against both the Australian Dollar (2.0320) and the New Zealand (2.5860).

- We expect a range today in the GBP/AUD rate of 2.0150 to 2.0420

:: New Zealand Dollar: The New Zealand Dollar opens half-a-US-cent lower on Tuesday at 0.6200 as the greenback continued its recent run higher against several major currencies. Speculation is mounting amongst US traders that the Federal reserve will be forced to raise rates later in the year as the economy recovers. The kiwi hit a low of 0.6150 overnight after a fairly muted local trading session on Monday due to a public holiday in Australia. Attention is turning to the Reserve Bank of New Zealand's monetary policy on Thursday.

- We expect a range today in the NZD/USD rate of 0.6120 to 0.6260

:: Majors: The Euro slumped to a one-week low against the big dollar as investors in the United States concluded the Federal Reserve will be forced to raise interest rates by the end of the year as the economy recovers. The Euro opens at 1.3897, down from this time yesterday (1.3968). Also weighing on the Euro was the second downgrading this year of Ireland's sovereign credit rating by Standard & Poor's. Meanwhile, the Yen advanced from a one-month low against the greenback to open at 98.48 after a report released on Monday showed a decline in Japanese bankruptcies. Stocks in Japan rose to an eighty-month high.

:: Data Releases:

  • AUD: NAB Business confidence; ANZ job adds, May
  • CAD: No Data Today
  • EUR: German Trade Balance & Industrial Production, April
  • GBP: House Prices, May
  • JPY: Machine Tool Orders, May
  • NZD: No Data Today
  • USD: No Data Today

:: Note: The above exchange rates are based on interbank rates. If you are considering a transfer then please login, register or call us for a live dealing rate.