:: Australian Dollar: The Australian Dollar opens largely unchanged on Wednesday at 0.8160 and is pausing for breath after six days of steady gains versus its US counterpart. During the domestic session on Tuesday, the Aussie traded as high as 0.8178 after the minutes of the RBA's July 7 board meeting painted a picture of an economy in recovery mode. The central bank sees no need to cut interest rates amid signs of stabilisation in the global and domestic economies. June quarter consumer price index (CPI) data is due for release at 11:30 AEST which is tipped to show an annualised inflation pace of 1.5 per cent.
- We expect a range today in the AUD/USD rate of 0.8100 to 0.8220
:: Great Britain Pound: Pound Sterling opens lower on Wednesday at 1.6460 after a report showed the UK budget deficit hit GBP13 million in June compare to GBP7.5 million a year earlier. Concerns over public finances is likely to be negative for the pound over the short-term. Support for the currency came in the form of another move higher in UK equities which has had its longest run of gains in four years. Meanwhile, the pound is lower against both the Australian Dollar (2.0100) and the New Zealand Dollar (2.5020).
- We expect a range today in the GBP/AUD rate of 1.9900 to 2.0120
:: New Zealand Dollar: The New Zealand Dollar has retreated from its seven-week highs around the US66 cent mark and opens on Wednesday at 0.6550. In the absence of any local economic data, recent moves in the kiwi have mirrored that of the Australian Dollar and the positive sentiment from several straight days of gains in global equities. Stronger-than-expected corporate earnings in the United States have prompted investors to renew their holdings of high-yielding currencies such as the New Zealand and Australian Dollars.
- We expect a range today in the NZD/USD rate of 0.6490 to 0.6620
:: Majors: The big dollar and the Japanese Yen both climbed early in the session overnight as traders sought refuge amid renewed concerns that CIT Group Inc may file for bankruptcy, contrary to reports on Monday. The Euro hit a low of 1.4162 and opens on Wednesday at 1.4225 whilst the Yen has strengthened and opens at 93.75. Keeping a lid on the greenback overnight were comments from US Federal Reserve Chairman Ben Bernanke that the central bank intends to maintain a “highly accommodative” monetary policy stance for an extended period. Meanwhile, the Bank of Canada left its benchmark interest rate at a record low of 0.25 per cent. The Canadian Dollar has rallied 11 per cent this year against the greenback.