:: Australian Dollar: The Australian Dollar opens lower today at 0.9140 after a volatile local session on Thursday. The Aussie’s foray above US93 cents due to a weak greenback was short-lived after the release of third-quarter capital expenditure data which fell 3.9 per cent. The unit fell sharply to an intraday low of 0.9230 ahead of a move back up to 0.9245 heading into European trade. In offshore trade, the unit moved between a high of 0.9245 down to 0.9100 on renewed risk aversion, however volumes were far thinner than usual with the United States celebrating Thanksgiving Day.
- We expect a range today in the AUD/USD rate of 0.9060 to 0.9220
:: Great Britain Pound: A rise in November UK retail sales could not prevent the pound falling overnight to a low of 1.6466. The currency’s slide was mainly due to continuing strength in the Japanese Yen and moves away from risk after news emerged that delayed debt payments by Dubai could trigger a major sovereign default. UK stocks slid 3.2 per cent – its biggest intraday fall in eight months. Meanwhile, the pound is higher against both the Australian Dollar (1.8046) and the New Zealand Dollar (2.3050).
- We expect a range today in the GBP/AUD rate of 1.7950 to 1.8160
:: New Zealand Dollar: A weaker than expected reading in the monthly NBNZ Business Confidence indicator (Actual 43.4; Previous 48.2) put the brakes on any Kiwi advances during trade Asian trade yesterday. The Kiwi fell almost 50 points from just above 0.73 cents prior to the announcement to 0.7261. The result surprised the market as many expected recent data out of New Zealand to be fairly positive and in line with an economy that has exited a recession. In offshore trade the Kiwi traded between 0.7250 down to 0.7127 but with the US celebrating Thanksgiving last night, trade for the rest of the week is expected to be fairly thin. The release this morning of the October Trade Balance will direct FX traffic in Asia with the number tipped to come in at –NZD480 million, compared with a previous month’s reading of –NZD424 million.
- We expect a range today in the NZD/USD rate of 0.7100 to 0.7230
:: Majors: The greenback has slumped to a fourteen-year low against the Yen and opens on Friday at 86.46 on speculation Japanese monetary authorities will tolerate further appreciation of the currency. In overnight trade the big dollar moved to a low of 86.23 after Japanese Finance Minister Hirohisa Fujii suggested the government needs to take action on “abnormal” currency movements. Whilst the dollar slid against the Yen, it rose against several other major currencies after Dubai sought a 6-month suspension on debt payments prompting investors to shun riskier assets. Meanwhile, the Euro retreated from 15-month highs dipping to a session-low of 1.4958 and opens on Friday at 1.5000.
:: Data Releases:
• AUD: No data today
• CAD: Current Account, Q3
• EUR: No data today
• GBP: No data today
• JPY: Jobless rate; Household spending; Retail Sales; CPI, Oct
• NZD: Trade Balance, Oct
• USD: No data today
:: 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.