:: Australian Dollar: The Australian Dollar opens marginally higher today at 0.9230 after the greenback weakened against several major currencies during overnight trade. The Aussie moved up around half a US cent in local trade on Wednesday to an intraday high of 0.9234 as data revealed that total personal and commercial finance commitments rose in November. Keeping a lid on the currency yesterday however was weaker Asian equities and lower base metals and commodity prices. During the offshore session, the unit moved between a low of US92 cents and a high of 0.9265.
- We expect a range today in the AUD/USD rate of 0.9180 to 0.9280
:: Great Britain Pound: Pound Sterling (1.6260) opens higher against the greenback for a fourth straight session after economic data released yesterday showed industrial production grew 0.4 per cent. During overnight trade. The pound moved from a low of 1.6136 to a four-week high of 1.6307. Also supporting the pound were comments by Bank of England policy maker Andrew Sentance that enough has been done to stimulate the economy. Meanwhile, the pound is slightly higher today against both the Australian Dollar (1.7620) and the New Zealand Dollar (2.1990).
- We expect a range today in the GBP/AUD rate of 1.7500 to 1.7700
:: New Zealand Dollar: The New Zealand Dollar opens largely unchanged at 0.7395 against the greenback today. In largely directionless trade yesterday in the absence of any local economic data, the kiwi moved in a tight band between 0.7370 and 0.7405 and had several failed attempts to breach US74 cents. During the overnight session, the currency traded in a similar pattern between 0.7370 and 0.7424. On the cross rates, the kiwi is also steady against its Australian counterpart and opens today at 0.8000.
- We expect a range today in the NZD/USD rate of 0.7360 to 0.7425
:: Majors: The greenback weakened overnight against the Euro (1.4500) after the U.S. Federal Reserve said in its monthly Beige Book business survey that the economy is in the midst of a modest recovery. Two weeks out from the next Federal Open Market committee meeting, the central bank said while economic activity remains at a low level, conditions have improved modestly further. U.S. interest rates expected to remain near zero for an extended period. During overnight trade the Euro moved between a low of 1.4456 to a high of 1.4578. Meanwhile, the dollar moved slightly higher against the Japanese Yen and opens on Thursday at 91.40.
:: Data Releases:
- AUD: Labour Force, Dec
- CAD: No data today
- EUR: ECB Interest Rate decision
- GBP: No data today
- JPY: Machine Orders, Nov
- NZD: Building permits, Nov
- USD: Retail Sales, Dec