Daily forex forecast 08/6/2010

 @ibtimes on June 07 2010 6:27 PM

:: Australian Dollar: The Australian Dollar opens lower against the greenback today at 0.8100. Support at US82 cents gave way yesterday very early in the local session as equity markets lost almost 3 per cent and the 16-nation Euro currency slid to new multi-year lows. The Aussie dipped its toe briefly beneath 0.8100 and steadied around 0.8235 after local economic data hinting at renewed strength in the labour market. The ANZ Bank’s monthly survey of job advertisements rose 4.3 per cent in May suggesting Australian employers remain confident despite a series of interest rate rise since last October. In overnight trade, the Aussie followed the fluctuating fortunes of the Euro however the gains were unsustainable.

- We expect a range today in the AUD/USD rate of 0.8030 to 0.8140

:: Great Britain Pound: Pound Sterling moved higher against the greenback overnight and opens at 1.4460 after Prime Minister David Cameron indicated this month’s emergency budget will tackle the nation’s debt problem. In overnight trade, the pound moved between a low of 1.4387 up to a high of 1.4562. Risk-aversion and greenback strength are likely to continue to weigh on the pound near-term. Meanwhile, the pound has outperformed the Australian Dollar (1.7840) and the New Zealand Dollar (2.1950).

- We expect a range today in the GBP/AUD rate of 1.7800 to 1.7925

:: New Zealand Dollar: The New Zealand Dollar opens sharply lower today against the greenback at 0.6585. A public holiday on Monday kept volumes to a minimum but this did not prevent the kiwi coming under intense selling pressure as the Euro continued its recent dramatic slide. The local unit hit an intraday low of US66 cents. During overnight trade the kiwi briefly hit a high towards US67 cents however greenback strength emerged once again and the unit fell sharply late in the session all the way to this morning’s opening level.

- We expect a range today in the NZD/USD rate of 0.6500 to 0.6620

:: Majors: The Euro opens lower against the greenback on Tuesday at 1.1910. The 16-nation currency fluctuated between fresh four-year lows of 1.1875 and a session-high 1.1991 after German factory orders rose 2.8 per cent. The data was much better than economists had predicted and allowed the Euro to rebound. Meanwhile, the greenback remains strong across the board as investors remain concerned about the European debt crisis and its potential negative impact on global growth. The big dollar opens at 91.34 against the Japanese Yen.

:: Data Releases: AUD: No data today CAD: No data today EUR: French Central Government Balance, April GBP: No data today JPY: No data today NZD: Manufacturing Activity, Q1 USD: ABC Consumer Confidence, June 6

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