:: Australian Dollar: The Australian Dollar opens higher at 0.9180 as the greenback and Yen weakened on Friday night and markets move back into currencies linked to economic growth. The Aussie was range-bound during Friday's local session (0.9135 - 0.9155) ahead of several attempts in Europe to break through the six-week high around 0.9190. The currency rode on the coat-tails of a stronger Euro (1.3750) which hit a one-month high against the greenback as Greeces plan to cut the Euro-regions largest budget deficit looks like winning the support of investors and credit-rating agencies. Consequently, the local unit has pulled back a shade from the recent dizzy heights against both the Euro (0.6670) and?Pound Sterling (0.6042).
- We expect a range today in the AUD/USD rate of 0.9150 to 0.9210
:: Great Britain Pound: Pound Sterling rose for a second consecutive session and opens on Monday in Sydney at 1.5195. The pound hit a two-week high on Friday night at 1.5216 after a report revealed that UK house prices rose at their fastest pace in seven years, easing recent concerns about the economy. However, budget deficit worries will continue to keep a lid on the currency. Meanwhile, the pound is marginally higher against both the Australian Dollar (1.6530) and the New Zealand Dollar (2.1540).
- We expect a range today in the GBP/AUD rate of 1.6480 to 1.6590
:: New Zealand Dollar: The New Zealand Dollar opens?the new week higher against the greenback?at 0.7040. The kiwi drifted?on Friday for an intraday range of?0.6980 and 0.7010 after disappointing local retail sales numbers. The unit spiked briefly towards 0.7045 during the European session as both the greenback and Japanese Yen weakened and markets moved back into currencies linked to economic growth. Any rallies in the kiwi are likely to be short-lived after last weeks decision by the Reserve Bank of New Zealand to keep rates steady at 2.5 per cent. The currency remains near nine-and-a-half year lows against the Australian Dollar at 0.7660.
- We expect a range today in the NZD/USD rate of 0.6980 to 0.7055
:: Majors: The big dollar and Japanese Yen were both weaker across the board on Friday night as strong economic data in the United States encouraged traders to move back into currencies linked to growth. Sales at U.S. retailers rose for a second month in February advancing 0.3 per cent, whilst in Europe, January industrial output rose the most since 1989 pushing the Euro to a one-month high of 1.3795 during Friday's session. Also aiding the 16-nation single currency were comments by European Central Bank President Jean-Claude Trichet who said that Greece's plan to cut the region's largest budget deficit will win the backing of investors and credit-rating agencies.
:: Data Releases:
- AUD: No data today
- CAD: No data today
- EUR: EZ Employment Q4
- GBP: Rightmove House Prices, March
- JPY: Consumer Confidence, Feb
- NZD: No data today
- USD: Industrial Production & Capacity Utilisation, Feb