Australian Dollar: The Australian Dollar opens higher against the greenback today at 0.9140. The Aussie spent most of the local session beneath US90 cents yesterday but bounced back to life offshore after U.S. economic growth data came in higher than anticipated. The U.S. economy grew at a 3.5 per cent annual pace in the September quarter prompting a rally in stocks and commodities and a move by investors back into high-yielding currencies. During overnight trade, the Aussie moved between 0.8970 and a high of 0.9180. There is no major local economic data scheduled for release today and the Aussie may receive a further boost should local equities follow the strong lead from Wall Street overnight.

- We expect a range today in the AUD/USD rate of 0.9080 to 0.9220

Great Britain Pound: Pound Sterling (1.6535) opens higher for a fourth straight session after a UK report showed mortgage approvals increased more than expected last month. The Bank of England reported that lenders granted 56,215 home loans in September, helping to advance the pound to an intraday high of 1.6603. Also aiding the pound's cause overnight was strong U.S. GDP data which had investors moving back into high-yielding currencies, therefore weakening the greenback. Meanwhile, the pound is softer against the Australian Dollar (1.8045) and slightly higher against the New Zealand Dollar (2.2550).

- We expect a range today in the GBP/AUD rate of 1.7950 to 1.8200

New Zealand Dollar: The New Zealand Dollar opens higher against its U.S. counterpart at 0.7310 after the Reserve Bank of New Zealand (RBNZ) kept the official cash rate (OCR) steady at 2.50 per cent. The kiwi dropped sharply beneath US72 cents after the announcement as RBNZ Governor Alan Bollard said there was no urgency to begin withdrawing monetary policy stimulus and we expect to keep the OCR at the current level until the second half of 2010. In overnight trade, the kiwi moved all the way up to 0.7367 after a U.S. report revealed economic growth surged in the September which spurred demand for high-yielding currencies.

- We expect a range today in the NZD/USD rate of 0.7280 to 0.7400

Majors: The Euro (1.4820) staged its biggest intraday rally since early September as demand for high-yielding currencies returned after U.S. growth data came in higher than expected. After a yearlong contraction and spurred on by government incentives to buy cars and homes, the U.S. economy grew at a 3.5 per cent annual pace in the third quarter prompting a rally in stocks and commodities and a reversal of recent moves in the greenback. In overnight trade, the Euro moved from a low of 1.4682 to an intraday high of 1.4858 soon after the data. With risk back on the agenda overnight, the Japanese Yen also took a tumble and opens at 91.44 (USD/JPY).

Data Releases:

  • AUD: Private Sector credit, Sep
  • CAD: GDP, Aug
  • EUR: Unemployment rate, Oct
  • GBP: No data today
  • JPY: BoJ target rate, Oct
  • NZD: Building permits, Sep
  • USD: Personal Income, Sep

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