:: Australian Dollar: The Australian Dollar opens marginally higher today at 0.8920. It was a quiet domestic session yesterday with only a 50 point range between 0.8880 and 0.8930. Keeping a tight lid on the currency was weaker than expected local wages data?which?may increase the likelihood of?interest rates remaining on hold next week. During the offshore session the Aussie?moved towards 0.8950 as the greenback weakened after Federal Reserve Chairman Ben Bernanke's?speech to congress in which he described the economic recovery as nascent and that U.S. interest rates would need to remain accommodative for an extended period.
- We expect a range today in the AUD/USD rate of 0.8890 to 0.8960
:: Great Britain Pound: Pound Sterling opens flat on Thursday in Sydney at 1.5390 despite a weaker greenback after comments by U.S. Federal Reserve Chairman Mr. Ben Bernanke who said that U.S. interest rates will need to remain low. Speaking of central banks, Bank of England policy-maker Adam Posen said the bank may extend its 200 billion-pound asset-purchase program to further stimulate the UK economy. The pound traded between 1.5386 and 1.5476 during overnight trade. Meanwhile, the pound is lower against both the Australian Dollar (1.7250) and the New Zealand Dollar (2.2230).
- We expect a range today in the GBP/AUD rate of 1.7180 to 1.7290
:: New Zealand Dollar: The New Zealand Dollar has recaptured some of the previous session''s?steep losses to open at 0.6920 against the greenback. Exporter interest and some profit-taking took the local unit to an intraday high yesterday of 0.6946 where technical resistance emerged on several occasions. During overnight trade the kiwi moved between a low of 0.6870 up to a high of 0.6950. Today sees the release of the National Bank of New Zealand business confidence survey which, on paper, should be closely watched by market participants.
- We expect a range today in the NZD/USD rate of 0.6880 to 0.6955
:: Majors: The big dollar retreated across the board overnight after Federal Reserve Chairman Ben Bernanke said the central bank will keep interest rates low to ensure the economic recovery. The Euro opens at 1.3520 whilst the greenback opens against the Japanese Yen at 90 from 90.20 this time yesterday. Describing the economic rebound as nascent, Mr Bernanke told congress in Washington that low interest rates are required for an extended period. The chairman's sobering assessment of the U.S. economy was backed up by the release overnight of January new home sales which came in at a record low, down 11 per cent to an annual pace of 309,000.
:: Data Releases:
- AUD: CAPEX, Q4
- CAD: No data today
- EUR: EZ Consumer & economic confidence, Feb
- GBP: Business investment, Q4
- JPY: No data today
- NZD: NBNZ Business confidence, Feb
- USD: Durable goods orders, Jan