:: Australian Dollar: The Australian dollar rallied against the US during Asia despite data showing a decline in business confidence and job advertisements. Increased risk appetite following the announcement of the EU’s rescue package saw commodities and stocks rocket around the world while the Aussie rose as much as 2.2% against the Greenback to 0.9079, it biggest intraday gain since October 29. The Aussie opens today at 0.9022 US ahead of Australia’s Federal Budget release. There is a wide range of Chinese economic data out today which will be closely watched by the local market.
- We expect a range today in the AUD/USD rate of 0.8980 to 0.9060
:: Great Britain Pound: The Pound benefitted strongly from the rally in risk after EU officials unveiled their loan package to prevent the looming sovereign debt crisis. The currency advanced to 1.5052 against the US dollar overnight. Gains by the Pound were erased during the US trading session as political insecurities heightened as Prime Minister Gordon Brown said Liberal Democratic leader Nick Clegg will discuss allying with the Labour party. The Pound fell to an overnight low of 1.4840 amid the political indecision. This morning the Pound opens the day buying 1.4871 US dollars ahead of tonight’s GDP and production figures. Meanwhile, the pound is lower against both the Australian Dollar (1.6458) and the New Zealand Dollar (2.0580).
- We expect a range today in the GBP/AUD rate of 1.6400 to 1.6500
:: New Zealand Dollar: The New Zealand was another indirect beneficiary of the Euro Zone’s US$1 trillion aid package. Following the global trend the Kiwi peaked at 0.7295 against the Greenback at the start of offshore trading. The session-high just beneath US73 cents was fairly short-lived however and it eventually followed the Australian dollar lower and moved back down to more familiar territory opening this morning at 0.72 US. The kiwi has lost a small amount of ground against the Aussie and opens at 0.7980.
- We expect a range today in the NZD/USD rate of 0.7180 to 0.7245
:: Majors: The Euro opens today at 1.2785 against the Greenback as EU officials agree on an unprecedented rescue package totalling almost US 1 trillion dollars. The Euro soared to 1.3085 in the wake of the announcement early offshore. Monetary officials from the G-7 also agreed to defend the Euro by re-opening currency swap lines to ease liquidity in the market. Japanese Bonds fell as risk investors returned to the market dampening demand for the safety of government debt. The USD/JPY propelled to a top of 93.53 overnight and opens this morning not far off at 93.30.
:: Data Releases: AUD: NAB Business Conditions, April CAD: No data today EUR: German CPI, April GBP: Industrial Production, March JPY: No data today NZD: Credit Card Spending, April USD: No data today