:: Australian Dollar: The Australian Dollar opens marginally lower today at 0.9204 and spent most of yesterday's local session consolidating around the US92 cent mark. Support for the unit is coming in the form of stronger commodities, a softer greenback and more risk appetite. During the offshore session, the currency hit a 24-hour nadir of 0.9179 but climbed steadily late in the session after U.S. CPI data for February came in flat therefore backing up the U.S. Federal Reserve's decision early in the week to keep rates on hold.
- We expect a range today in the AUD/USD rate of 0.9180 to 0.9235
:: Great Britain Pound: Overnight UK data proved positive for the Pound during London trade as net public sector borrowing was reported to be 12.4 billion versus the 14.6 billion eyed by the market. Gains in the Cable capped at 1.5330 as business sentiment did not reflect market expectations of -33 though it did improve to -37 from -39. In the wake of positive US data the Pound fell to 1.5215 before opening lower this morning at 1.5242. Meanwhile, the Sterling also opens lower at 1.6540 and 2.1310 against the Aussie and Kiwi respectively.
- We expect a range today in the GBP/AUD rate of 1.6500 to 1.6600
:: New Zealand Dollar: After hitting an eight-week high near 0.7180 the previous night, the New Zealand Dollar traded in a very narrow band between 0.7120 and 0.7135 throughout yesterdays domestic?session. Overnight, the local unit was only marginally less subdued hitting a 24-hour zenith of 0.7168 during the New York session. Stronger base metals prices are supporting both the Australian and New Zealand Dollars at present. The kiwi has moved higher on the cross-rates and opens this morning at 0.7750 against its trans-Tasman rival.
- We expect a range today in the NZD/USD rate of 0.7135 to 0.7175
:: Majors: Euro selling continued for the second day running with the Euro sliding more than 1% from 1.3740 to 1.3585 against the Greenback overnight on concern Greece will not be able to secure financial aid from the European Union. Greek Prime Minister Papandreou has set a one-week deadline for the European Union to formulate an aid package or he may turn to the IMF. German resistance for a bailout package is high leaving investors questioning whether there is really a plan to support Greece. 'Calling in the IMF would probably have to be the way out right now if action were to be taken' said German Chancellor Merkel. Meanwhile, flat CPI figures from the US saw a short-lived rise in the Yen before investors took comfort in faster US manufacturing reports in Philadelphia. However the USD/JPY remains range bound trading mostly between 89.70 and 90.85. This morning the Euro and Yen open at 1.3615 and 90.32 relative to the US Dollar.
:: Data Releases:
- AUD: No data today
- CAD: CPI, Feb
- EUR: German PPI, Feb
- GBP: CBI Industrial Trends, Mar
- JPY: No data today
- NZD: Visitir Arrivals, Credit Card spending, Feb
- USD: No data today