:: Australian Dollar: The Australian Dollar opens lower against the greenback today at 0.9215 after giving back all of yesterday's gains, and then some, as risk aversion swept offshore markets overnight. During yesterday's domestic session, local unemployment data came in better than expected. Whilst the jobless rate rose to 5.8 per cent, 24,500 positions were added in the month of October. A second consecutive monthly rise in employment may lead to another 25 basis point rate hike by the RBA in December. The Aussie rallied sharply after the data yesterday and hit a new calendar-year high of 0.9360 on the likelihood that our favourable interest rate differential with the likes of the USA, Japan and Europe is set to widen further. Duri ng overnight trade however, the currency declined steadily down to 0.9220.
- We expect a range today in the AUD/USD rate of 0.9180 to 0.9290
:: Great Britain Pound: Pound Sterling opens weaker against the greenback on Friday at 1.6570. The pound neared one-week lows overnight hitting 1.6514 and was still reeling from comments the previous day by Bank of England Governor Mervyn King that a weak pound is helpful to the U.K. economy. The indication to markets that the central bank may not have yet completed its quantitative easing program is likely to weigh on the pound near-term. Meanwhile, the pound is higher against both the Australian Dollar (1.7960) and the New Zealand Dollar (2.2610).
- We expect a range today in the GBP/AUD rate of 1.7850 to 1.8050
:: New Zealand Dollar: The New Zealand Dollar opens marginally lower today at US73.20 cents. During yesterday's local session the kiwi moved up over US74 cents after New Zealand retail sales edged up 0.5 per cent in the September quarter on a seasonally adjusted basis. The currency spiked to an intraday high of 0.7440 as it followed the Australian Dollar higher. Interest rates across the Tasman may need to increase for a third consecutive month in December after stronger than expected jobs data. As a result, the kiwi is a bit softer against the Aussie and opens today at 0.7925. During overnight trade, markets eschewed risk as stocks and commodities retreated pushing the kiwi down steadily to a 24-hour low of 0.7314 against the greenback.
- We expect a range today in the NZD/USD rate of 0.7280 to 0.7390
:: Majors: The Euro opens weaker today at 1.4855 against the U.S Dollar after running into strong technical resistance in recent sessions around the 1.5000 level. The Euro peaked this year on October 26 at 1.5063 - a 14-month high. The greenback advanced overnight against several major currencies after a decline on Wall Street prompted a bout of risk aversion. Gold (US$1,108.40/oz) retreated from its record high and crude oil dropped to US$77.25/barrel. Also weighing on the Euro temporarily was last night's release of Euro zone industrial production which rose a less-than-expected 0.3 per cent in September, after a 1.2 per cent gain the previous month. Meanwhile, the big dollar is higher against the Japanese Yen at 90.30.
:: Data Releases:
- AUD: No data today
- CAD: Trade Balance, New Motor vehicle sales, Sep
- EUR: EZ CPI, Oct; EZ GDP Q3; German GDP Q3
- GBP: No data today
- JPY: Consumer confidence, Oct
- NZD: Business PMI, Oct
- USD: Trade Balance, Sep; Uni of Michigan confidence, Nov
:: 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.