:: Australian Dollar: The Aussie dollar experienced little in the way of volatility during yesterday's local trading day bouncing between 0.8350 and 0.8375 for the majority of the Asian session. Despite a relatively subdued European session the AUD eventually popped through topside resistance following a better than expected U.S consumer confidence result to retest the previous days highs. Once again however sellers above 84 cents capped any further advances pushing the AUD/USD back down to retest 0.8350 in late trade. Today sees the release of second tier Australian data in the form of second quarter construction activity and August skilled vacancies which are only likely to exert minimal force on the currency.
- We expect a range today in the AUD/USD rate of 0.8275 to 0.8375
:: Great Britain Pound: A report from the British Bankers Association revealed that lending by U.K banks, as measured by net mortgage lending, remained subdued in July growing by just 1.6 billion GBP; the lowest since October 2000 and down from a 2.2 billion increase in June. The news added to the early London morning sell off which took the Pound Sterling to a low of 1.6340 against the Greenback. There was some respite for the GBP however as positive sentiment returned during the U.S session taking GBP/USD back above 1.6400. However the move proved to be temporary as the rally on equity markets petered out sending the Pound back to this morning's open at 1.6335. The GBP/AUD cross rate bounced back from its overnight lows of 1.9480 and opens this morning pressing against 1.9600 with the AUD looking somewhat vulnerable to some downside in Asia today.
- We expect a range today in the GBP/AUD rate of 1.9450 to 1.9650
:: New Zealand Dollar: The RBNZ two year inflation expectation came in slightly higher than the previous reading of 2.2% at 2.3%, providing some support for the Kiwi during intraday trade yesterday. Despite failing to break above resistance at 0.6860 during the Asian session offshore investors had little trouble pushing the NZD/USD closer to 69 cents overnight as positive sentiment following a better than expected U.S consumer confidence result emanated during early North American trade. Momentum disappeared however and the NZD opens this morning back at 0.6840 as equity markets gave back early gains to once again finish relatively flat.
- We expect a range today in the NZD/USD rate of 0.6800 to 0.6870
:: Majors: After dipping to an early London low of 1.4250 the Euro bounced back against the Greenback to open this morning hovering around the 1.4300 handle. Data out of Germany did however instigate a rally to an overnight high of 1.4360 following the release of better than expected second quarter private consumption data which represents household spending on all goods and services. Helping boost sentiment during the offshore session was a higher than forecast reading on consumer confidence out of the U.S, increasing from 47.4 to 54.1 during August. The big dollar traded sideways against the Japanese Yen oscillating between 94 and 94.50 for the majority of the session to open this morning at 94.15. In other news releases U.S Federal Reserve Bank chief Ben Bernanke has been given the green light for a second four year term by President Obama, a move that will appease the market and instil some confidence in the path to recovery.
:: Data Releases:
* AUD: Q2 Construction Work & Aug DEWR Skilled Vacancies
* NZD: No Data Expected today
* USD: Jul Durable Goods & Jul New Home Sales
* GBP: No Data Expected today
* EUR: Aug German IFO
* JPY: Jul Merchandise trade, Jul Corporate Service Price & Aug Small Business Confidence
* CAD: No Data Expected today