:: Australian Dollar: The Australian Dollar stole back some of its recent losses against the Greenback over night, moving back above the 80 cent level for the first time in 3 days. The release yesterday of the NAB Business Confidence survey came in better than expected with the number for May coming in at negative 2 compared with April's number of negative 14. The initial reaction to the data was fairly soft and it was not until late Europe and early New York time that the little battler really started to move. It traded in a fairly wide range overnight moving from a low of 0.7851 to a high of 0.8042.
- We expect a range today in the AUD/USD rate of 0.7920 to 0.8120
:: Great Britain Pound: Pound Sterling received a boost in the form of a better-than-expected housing survey by the Royal Institution of Chartered Surveyors. The pound opens today at 1.6306 after trading as high as 1.6361 as Prime Minister Gordon Brown has so far managed to fend off calls to step down amid a recent series of ministerial resignations. Meanwhile, the pound is steady against both the Australian Dollar (2.0340) and the New Zealand Dollar (2.5980).
- We expect a range today in the GBP/AUD rate of 2.0200 to 2.0420
:: New Zealand Dollar: The New Zealand Dollar opens higher on Tuesday at 0.6260 ahead of a possible interest rate cut by the Reserve Bank of New Zealand tomorrow. The market has not ruled out the possibility of surprise 25 basis point cut which would make the kiwi dollar less attractive compared to its Trans-Tasman rival the Aussie, where official interest rates are higher at 3.00 per cent. The kiwi has lost ground against the against the Aussie in recent days and opens today at 0.7810.
- We expect a range today in the NZD/USD rate of 0.6180 to 0.6310
:: Majors: The Euro rallied against the greenback on Tuesday for the first time in three days as the ‘green-shoot' recovery theory gets another run. The Euro climbed steadily throughout the session from a low of 1.3851 to a high of 1.4101 as investors moved their funds out of the greenback and into emerging markets and high-yielding currencies such as the Australian and New Zealand Dollars. Also weighing on the greenback is the prospect that any rise in rates by the US Federal reserve is not likely to occur for some considerable time yet. Meanwhile, the Japanese Yen also strengthened against the US Dollar and opens at 97.30 on Wednesday as the recession appears to be easing. Yesterday's release of the April coincident index, a barometer of consumer sentiment, recorded its first advance in 11 months.
:: Data Releases:
- AUD: Housing Finance, April; MI/WBC Consumer Sentiment, June Index
- CAD: Housing price Index, April
- EUR: German CPI, May
- GBP: Industrial Manufacturing Production, Trade Bal non-EU, April
- JPY: Machine Orders, April
- NZD: Terms of Trade, Q1
- USD: Fed Beige Book
:: 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.