:: Australian Dollar: The Australian Dollar opens at 0.8150 after another session of increased risk appetite in which equities and commodities all posted gains.. In offshore trade the Aussie climbed steadily and hit a high of 0.8174. Boosting sentiment was news that New York-based lender CIT Group Inc approved a US$3 billion loan from a group of its bondholders. The funds would give CIT a chance to restructure its debt outside bankruptcy. During the local session, the unit performed strongly hitting an intraday high of 0.8085 on the back of another positive session for local equities. Currency trading volumes were a little lighter than usual owing to the Japanese market being closed for a public holiday. Traders ignored second quarter producer prices which declined 0.8 per cent increasing the likelihood of official interest rates remaining at record lows. Most economists had tipped a small fall of 0.2 per cent.
- We expect a range today in the AUD/USD rate of 0.8090 to 0.8220
:: Great Britain Pound: Pound Sterling opens higher on Tuesday at 1.6539 after data compiled by web-based Rightmove PLC showed the average cost of a home in the United Kingdom has risen 0.6 per cent this month , compared to a fall in June. The pound had its biggest intraday move since July 9 and hit an overnight high of 1.6556 as UK equities moved higher for a sixth-straight session. Meanwhile, the pound continues to be outperformed by the Australian Dollar (2.0250) and the New Zealand Dollar (2.5150).
- We expect a range today in the GBP/AUD rate of 2.0150 to 2.0380
:: New Zealand Dollar: The New Zealand Dollar opens higher at 0.6560 in a continuation of the recent moves in line with the Australian Dollar given the absence this week of any major local economic data. As a result, the kiwi is largely unchanged against its Trans-Tasman rival and opens today 0.8045. Overnight, the kiwi traded at a six-week high against the greenback at 0.6578 as equities and commodities rose for a sixth-straight session. This was a fairly significant move given the strong technical resistance that has prevailed around the US65-cent level over the last 4 weeks.
- We expect a range today in the NZD/USD rate of 0.6490 to 0.6620
:: Majors: The Euro opens near six-week highs at 1.4227 after another session of increased risk appetite. The big dollar dropped against most of its major rivals overnight and stocks gained as the board of the New York-based lender CIT Group Inc approved a US$3 billion loan from a group of its bondholders. The funds would give CIT a chance to restructure its debt outside bankruptcy. The Canadian Dollar has also continued its recent run higher and is trading at 1.1057 after crude oil rallied over 2 per cent to US$64.90 per barrel. Meanwhile, the greenback opens steady against the Japanese Yen at 94.16.