:: Australian Dollar: The Australian Dollar opens today at 0.8810 having surged higher during local trade on Wednesday after stronger than expected economic data. The Aussie climbed steadily from the word go yesterday before hitting a new 13-month high of US88 cents as August retail sales rose 0.9 per cent and had traders speculating not just about the timing of the next rate rise but also the size. Interest rates are now widely tipped to rise from their unusually low levels before the end of 2009 and the higher yield is likely to attract the attention of offshore investors. During offshore trade, the unit was volatile and moved back down towards 0.8750 before rallying once more to this morning's opening level.
- We expect a range today in the AUD/USD rate of 0.8750 to 0.8880
:: Great Britain Pound: Pound Sterling moved higher for a second day running and opens at 1.5980 against the greenback. Prospects for a rebound in economic conditions received a boost overnight in the form of a jump in U.K consumer confidence. The sentiment index rose to minus 16 in September compared to minus 25 in August and is the highest reading since January 2008. The pound rallied to a high of 1.6125 but the move was short-lived as volatility returned to commodity and equity markets. The pound has not gained any ground on either the Australian Dollar (1.8100) nor the New Zealand Dollar (2.2119).
- We expect a range today in the GBP/AUD rate of 1.8000 to 1.8250
:: New Zealand Dollar: The New Zealand Dollar opens higher against the greenback today at 0.7220. During local trade on Wednesday the kiwi recaptured all of the previous session''s losses rallying steadily to an intraday high of 0.7220 on the back of a stronger Australian Dollar as high-yielding currencies came back into the fold. During overnight trade the unit moved between a low of 0.7180 and a high of 0.7252 amid volatile equity and commodity markets. On the cross rates, the kiwi is buying 0.8180 Australian Dollars and 0.4932 Euros. There is no local economic data due for release today.
- We expect a range today in the NZD/USD rate of 0.7120 to 0.7210
:: Majors: The Euro moved higher overnight against the greenback and opens on Thursday at 1.4620 as the European Central Bank (ECB) announced it will lend less money to banks at their next auction. An ECB council member said the system is liquid enough and that banks don't need funds so much. The Euro extended its recent advance against the big dollar to an overnight high of 1.4672. In the United States the Chicago Purchasing Managing Index dropped to 46.1 in September from 50 in August and lower than forecasts by economists. Also adding to evidence of a protracted economic recovery in the U.S. was a loss of 254,000 jobs in September, according to ADP Employer Services. Meanwhile, the Canadian Dollar (1.0695) has risen the most in almost 4 weeks as oil and gold both advanced overnight.
:: Data Releases:
- AUD: No data today
- CAD: No data today
- EUR: Unemployment, Aug; PMI, Sept
- GBP: House Prices, PMI, Sept
- JPY: Tankan Report, Q3
- NZD: No data today
- USD: Personal income/spending, Pending home sales, Construction spending, August; Auto sales, ISM Manufacturing, Sept