:: Australian Dollar: Hot on the heels of the FOMC downgrade of U.S GDP softer than expected Chinese data triggered a selloff of higher yielding Currencies in Asia as concerns over the potential slowdown in global growth resurfaced. Chinese Q2 GDP printed at 10.3% versus 10.5% forecast, down from 11.9% the previous quarter while retail sales slowed to 18.3%. The news weighed the Australian Dollar down to 0.8753 early offshore. In Europe the successful auction of Spanish debt sparked a rally in risk overnight. Traders continued to dump the Greenback following a surprise improvement in the number of jobless Americans. The Aussie opens today at 0.8835 US.

- We expect a range today in the AUD/USD rate of 0.8800 to 0.8875

:: Great Britain Pound: The Cable rallied overnight as investors focused on regional fundamental figures. The Pound broke past 1.5350 US during European trade following the successful auction of Spanish debt following Greece's Success earlier in the week. The Sterling tightened it grasp in the Greenback rising above the 1.5450 handle on several occasions later in the evening after US economic data failed to deliver. The Pound opens at 1.5439 US, a level not seen since late April.

- We expect a range today in the GBP/AUD rate of 1.7350 to 1.7550

:: New Zealand Dollar: In Asia the New Zealand dollars fell on speculation ebbing growth in China will lead to diminished demand for exports from the South Pacific nations. Moving offshore risk sentiment improved following positive news from Europe and the Kiwi recovered its losses from earlier. An unexpected decline in US regional factory activity and a third straight month of decline in US producer prices initially hurt market sentiment causing the Kiwi to fall to 0.7173 US before rallying to overcome 0.7300. today the Kiwi starts the day buying 0.7270 USD.

- We expect a range today in the NZD/USD rate of 0.7180 to 0.7300

:: Majors: The Euro opens this morning buying 1.2935 US after rallying to new 2 month high of 1.2953 US overnight. Fears over the financing of Southern European debt eased following a robust Spanish bond auction where Spain was able to auction off nearly 3 billion in debt, attracting bids worth 2.57 times the securities offered. Later in the evening reports showing a slowdown in manufacturing in the New York and Philadelphia regions extended the Euro's gains against the Greenback. Meanwhile the dovish view from US saw investors reshuffle portfolios unwinding USD assets while adding Yen. The USD/JPY opens this morning at 88.30.

:: Data Releases:

  • AUD: No Data Expected Today
  • NZD: Q2 CPI
  • USD: Jun CPI, May TIC Flows & Jul Prelim Uni of Michigan Confidence
  • GBP: No Data Expected Today
  • EUR: May Trade Balance
  • JPY: May Tertiary Index & BOJ Monthly Report

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