:: Australian Dollar: The Aussie gained ground ahead of yesterdays Australian Retail Sales data release pressing against 0.9290 only moments before the announcement. With consumer spending during the month of October coming in right on markets expectations of a 0.3% increase the reaction was relatively subdued and the AUD continued to hover around this level. During Afternoon Asian trade however demand re-emerged to push it above the 93 cent mark with offshore markets continuing the theme. Resistance ahead of 0.9320 however capped any further advances as comments from the European Central bank about the importance of a strong U.S dollar increased demand for the Greenback. This morning sees the AUD/USD open around 0.9275 after having dipped to an overnight low of 0.9250.
- We expect a range today in the AUD/USD rate of 0.9225 to 0.9325
:: Great Britain Pound: The Pound Sterling could not manage to sustain an early offshore rally above 1.6700 against the Greenback sliding to an eventual overnight low near 1.6550 during U.S exchange. A slightly lower than forecast November PMI for the U.K services sector saw some negative sentiment towards the Cable, however it was after the ECB meeting and accompanying comments that the move lower gained momentum. This morning sees the GBP open near its lows against both the USD and the AUD at 1.6565 and 1.7860 respectively.
- We expect a range today in the GBP/AUD rate of 1.7820 to 1.7920
:: New Zealand Dollar: After opening only marginally above 72 cents the Kiwi followed the Aussie dollar higher during yesterday's local session with added support coming on the back of a big 10.5% rise in the ANZ Commodity Price index for the month of November. Momentum continued during offshore exchange as the market keenly anticipated some major European economic data with the ECB rate meeting holding centre stage. Despite peaking at 73 cents the NZD/USD retreated following calls for a strong Greenback from ECB President Trichet falling to around 0.7220. This evenings U.S employment report is sure to see a volatile end to the weeks trade.
- We expect a range today in the NZD/USD rate of 0.7185 to 0.7285
:: Majors: In what was a big night on the European data front the Euro firmed slightly against the Greenback from 1.5075 in late Asian trade to exchange as high as 1.5140 immediately following the ECB decision to keep rates on hold at 1%. Whilst consumer spending in the region came in flat and disappointed analysts that had forecast a rise of 0.2% or higher it was the accompanying rhetoric from the central bank that sparked an increase in volatility. In a clear move towards scaling back emergency lending president Trichet announced that the 12 month loans to banks will be tied to the ECB's benchmark rate rather than be fixed at 1%. The news stoked fears of an increase in inflation and possible rate rises in 2010 which added support to the Euro. However it was comments expressing that it was very important that the U.S has a strong dollar that reversed the upward trend sending EUR/USD back towards 1.5060. The volatility subsided somewhat durin g the U.S session and the big dollar opens at 1.5090 and 88.20 against the Euro and Yen with second tier economic data out of North America having had little impact on currency markets. Investors are now eyeing this evenings U.S employment report with forecasters predicting an improvement in the number of job losses from 190k in October to around 120k during the month of November.
:: Data Releases:
- AUD: No Data Expected Today
- NZD: No Data Expected Today
- USD: Nov Unemployment Rate, Nov Payrolls & Oct Factory Orders
- GBP: Nov Halifax House Prices
- EUR: No Data Expected Today
- JPY: No Data Expected Today
- CAD: Nov Employment Report & Nov Ivey PMI
:: 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.