Daily forex forecast -24/5/2010

By IBTimes Staff Reporter | May 23 2010 6:01 PM

:: Australian Dollar: The Aussie opens at 0.8310 on Monday. Unsubstantiated rumours of Reserve Bank intervention and technical support just above US80-cents halted the recent dramatic slide in the currency on Friday. The Australian Dollar endured another session of extreme volatility trading?as low as 0.8070 after a poor lead from local equities. The unit?climbed from 10-month lows to a 24-hour high of 0.8364 as global equity markets stabilised.?Until there is a clear sign of some sort of solution to the fiscal crisis in Europe, risk currencies such as the Australian Dollar are likely to remain volatile and under pressure.

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- We expect a range today in the AUD/USD rate of 0.8180 to 0.8380

:: Great Britain Pound: Pound Sterling posted another week of declines against the big dollar and opens on Monday at 1.4468. Concerns over fiscal debt in Europe and the United Kingdom are hanging over the pound like volcanic ash and there is no breeze on the radar. However, the pound is having a better time against the underperforming risk currencies of Australia and New Zealand and opens the new week at 1.7360 and 2.1300 respectively.

- We expect a range today in the GBP/AUD rate of 1.7300 to 1.7480

:: New Zealand Dollar: The New Zealand opens at 0.6770 on Monday after another volatile session on global currency and equity markets as European Union officials continue to work on a solution for the lingering debt crisis. The kiwi traded between a low of 0.6635 on Friday up to a high of 0.6815. A rise of 3.4 per cent in New Zealand consumer confidence was largely ignored by local market participants as?the kiwi''s?trans-Tasman rival sunk to a 10-month low of 0.8070. The kiwi has picked up some ground against the Australian Dollar and opens today at 0.8140.

- We expect a range today in the NZD/USD rate of 0.6680 to 0.6820

:: Majors: The Euro moved to a one-week high of 1.2671 on Friday night as investors bought the currency after several days of steep declines. Against the greenback, the unit opens at 1.2544. Temporary support for the 16-nation currency emerged as EU officials pledged to tighten sanctions on high-deficit member countries and said that no European country will be allowed to renege on its debts. Despite global equity markets stabilising somewhat on Friday, currency?traders are likely to remain nervous early this week. Meanwhile, the big dollar opens marginally higher against the Japanese Yen today at 90.33.

:: Data Releases: AUD: Vehicle Sales, April CAD: No data today EUR: No data today GBP: No data today JPY: No data today NZD: No data today USD: Chicago Fed Manufacturing Index; Existing Home Sales, April