:: Australian Dollar: The Aussie dollar bounced back from Friday's morning sell off towards 88 cents to enter offshore exchange around 0.8880 against the Greenback. Lacking direction during European trade the AUD/USD bounced between 0.8860 and 0.8910 on several occasions, surviving a brief dip to 0.8840 and opening this morning pressing against resistance at 0.8910. With persistent demand for U.S dollars over the last week expected to continue it appears attempts to regain the 90 cent handle will be relatively short lived during the early part of this week and with only New Motor Vehicle sales data scheduled for release in Australia this week direction will continue to come from offshore heading into the calendar year's end.

- We expect a range today in the AUD/USD rate of 0.8825 to 0.8950

:: Great Britain Pound: A big increase in U.K public sector net borrowing during the month of November gave the Pound Sterling some upside momentum in early offshore trade on Friday. GBP/USD jumped from 1.6140 to a high of 1.6250 however given the final result was slightly below expectations and demand for the U.S dollar re-emerged the Cable fell to 1.6050. This morning sees the GBP exchanging at 1.6130 and 1.8120 against the U.S and Australian dollars.

- We expect a range today in the GBP/AUD rate of 1.8080 to 1.8180

:: New Zealand Dollar: The Kiwi followed the Aussie dollar lower during Friday's morning session exchanging as low as 0.7060 before bouncing back in the Asian afternoon to enter offshore back above 71 cents. With mixed European economic data failing to add any true direction it was not until the U.S trading day that NZD/USD moved out of its narrow 0.7100 to 0.7130 range. As demand for the Greenback emerged the Kiwi dipped back to retest support at 0.7060 before bouncing back late in the session to open this morning around the 71 cent handle. The week ahead sees the release of important New Zealand economic data in the form of Q3 Current Account and GDP which are sure to move the currency markets.

- We expect a range today in the NZD/USD rate of 0.7075 to 0.7125

:: Majors: The Euro bounced between 1.4350 and 1.4400 searching for direction against the Greenback during Friday's European trading session. In mixed German economic data released Producer Prices fell short of expectations for a 0.2% rise in November increasing a marginal 0.1% during the month whilst the IFO business survey came in slightly above forecasts. Some support for the EUR/USD came on the back of further widening in the Euro-zone Trade Surplus with an increase in exports indicating a strengthening in the broader European economy. Demand for the big dollar emerged during U.S trade following separate reports indicating both an increase in consumer spending and a drop in unemployment. EUR/USD fell to its lowest level since September 4 exchanging at 1.4260 with USD/JPY peaking at 90.90 in late trade. This morning sees the Greenback exchanging at 1.4330 and 90.35 against the Euro and Yen respectively as the market moves towards holiday mode with year-end positionin g likely to keep the relatively well supported against the majors.

:: Data Releases:

  • AUD: Nov New Motor Vehicle Sales
  • NZD: Nov Visitor Arrivals & Nov Credit Card Spending
  • USD: No Data Expected Today
  • GBP: No Data Expected Today
  • EUR: No Data Expected Today
  • JPY: BoJ Monthly Report & Nov Trade Balance

:: 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.

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