:: Australian Dollar: The Australian Dollar opens sharply higher against the greenback on Wednesday at 0.8650. During local trade yesterday, the unit moved down from the long-weekend highs above US86 cents after the release of the June Reserve Bank of Australia (RBA) board meeting minutes indicated that interest rates are likely to remain on hold next month. Whilst the RBA remains positive about the medium-term outlook for the local economy, uncertainty over the European debt crisis prompted the decision to leave rates on hold this month. During overnight trade, the Aussie moved between a low of 0.8504 up to a high of 0.8660 on the back of improved risk sentiment as global equities rallied and commodity prices firmed across the board.
- We expect a range today in the AUD/USD rate of 0.8600 to 0.8680
:: Great Britain Pound: The pound opens firmer against the greenback today at 1.4802 on improved risk sentiment. Sterling hit a one-month high of 1.4835 during overnight trade on speculation next week’s emergency budget will bring the nation’s fiscal deficit under control. Also aiding the currency was the release of a U.K. house price index which rose in May to the highest level in four months. Meanwhile, the pound opens steady against both the Australian Dollar (1.7100) and the New Zealand Dollar (2.1180).
- We expect a range today in the GBP/AUD rate of 1.7050 to 1.7160
:: New Zealand Dollar: The New Zealand Dollar opens higher today against its U.S. counterpart at 0.6980. The local currency has been buoyed in recent days by global risk factors along with higher base metal and commodity prices. The rally briefly ran out of steam during yesterday’s local session hitting a low of 0.6920 after credit card spending came in weaker-than-expected at +1.3 per cent in May. During overnight trade, the kiwi moved between a low of 0.6885 up to a high of 0.6993 on the back of improved risk sentiment as global equities rallied and commodity prices firmed across the board. Meanwhile, the kiwi is marginally lower against its trans-Tasman rival at 0.8065.
- We expect a range today in the NZD/USD rate of 0.6910 to 0.7025
:: Majors: The Euro opens higher today at 1.2320 on the back of improved risk sentiment as global stock markets rallied and commodity prices rose. During overnight trade, the 16-nation currency moved between a low of 1.2167 and a high of 1.2348 – its strongest level in two weeks. Whether the tide has turned for the Euro is too early to say as the next level of resistance looms around the 1.2475 area. Meanwhile, the big dollar opens steady against the Japanese Yen at 91.45 after the U.S. Federal Reserve Bank of New York’s general economic index was up 1.4 per cent last month for its eleventh consecutive month of growth.
:: Data Releases: AUD: Dwelling Starts, Q1 CAD: No data today EUR: CPI, May GBP: No data today JPY: BoJ Monthly Report NZD: No data today USD: PPI, Housing Starts, Industrial Production, May