Australian Dollar: The Australian Dollar opens at US91 cents after yesterday's release of September trade data hinted that official interest rates may need to be increased for third consecutive month in December. The trade deficit was smaller than expected at A$1.849 billion, however imports were up 5 per cent suggesting that domestic demand remains robust. During overnight trade the Aussie moved between a low of 0.9030 and a high of 0.9122 after central banks in Europe and the United Kingdom left their benchmark lending rates on hold at record lows (1.00 per cent and 0.50 per cent respectively). The local currency continues to be underpinned by the potential for widening interest rate differentials and strong commodity prices

- We expect a range today in the AUD/USD rate of 0.9050 to 0.9200

Great Britain Pound: Pound Sterling opens largely unchanged at 1.6574 against the greenback after Britain's main interest rate was kept at the record low of 0.50 per cent. The Bank of England expanded its debt-purchase program by a less-than-expected 25 billion pounds and said in an accompanying statement that prospects are for a slow recovery in the level of economic activity. In overnight trade, the pound moved from a low of 1.6465 to a high of 1.6635. Meanwhile, the pound is higher against both the Australian Dollar (1.8220) and the New Zealand Dollar (2.2950).

- We expect a range today in the GBP/AUD rate of 1.8120 to 1.8280

New Zealand Dollar: The New Zealand Dollar opens lower at 0.7210 against the greenback on Friday after a session of largely directionless trade. Despite stronger commodity prices lately, the kiwi fell during local trade yesterday to a low of 0.7190 after New Zealand's jobless rate hit a nine-year high at 6.5 per cent. The data was weaker than expected which resulted in the local currency spending the remainder of the local session around US72 cents. During the offshore session, the unit moved between 0.7160 and 0.7240.

- We expect a range today in the NZD/USD rate of 0.7130 to 0.7275

Majors: The Euro moved to a one-week high of 1.4917 against the greenback overnight after Euro-zone interest rates were kept at the record low level of 1 per cent. The European Central Bank (ECB) took its first step in removing emergency stimulus from the economy saying it will not offer 12-month loans to commercial banks next year. ECB president Jean-Claude Trichet said at a press conference that not all our liquidity measures will be needed to the same extent as in the past. Also looming large for the greenback is tonight's U.S. jobs report where the unemployment rate is widely tipped to come in at 9.9 per cent in October.

Data Releases:

  • AUD: RBA Statement on Monetary Policy
  • CAD: Unemployment rate, Oct
  • EUR: German factory orders, Sep
  • GBP: NIESR GDP Estimate, Oct
  • JPY: Leading/Coincident Index, Sep
  • NZD: No data today
  • USD: Non-farm payrolls, Unemployment rate, Oct

Note: The above exchange rates are based on interbank rates. If you are considering a transfer then please login, register or call us for a live dealing rate.

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