Australian Dollar
In what was a roller coaster ride for the Australian Dollar, yesterday’s news flows were kick started after figures from the ABS indicated that wages in Australia rose 1 percent in the fourth quarter of 2011, beating the expected reading of 0.8. With such results supporting the Nations currency further demand was spurred during the intraday session where a preliminary reading of Manufacturing from China also showed some positive signs of growth with a better than forecast reading of 49.7. Despite the positive reading, gains on the Australian Dollar were short lived and after trading to a late morning high of 1.0685 against its US Counterpart we see the local unit open this morning currently trading at a rate of 1.0643. Looking ahead for the remainder of the week with a political leadership battle taking shape and concerns still lingering over Greece’s Long-term viability the Australian dollar is likely to remain under pressure over the coming days

We expect a range today of 1.0600 – 1.0710

New Zealand Dollar
Global equities finished lower yesterday with a string of poor data releases out of Europe spurring fresh concerns over the health of the global economy. After initially opening the day at a rate of 0.8337 against its US Counterpart the kiwi was sold off across the board as it entered the offshore session trading to an eventual low of 0.8294. Despite the better than expected housing data that surfaced out of the US, global risk sentiment remained negative for much of evening with investors still holding very real fears over Greece’s long-term ability to meet debt and austerity commitments. This morning sees the kiwi open around half a cent lower against the Greenback currently buying 82.94 US Cents and with little in the form of local data to provide any real support the New Zealand Dollar is likely to remain at the mercy of broader global risk-sentiment over the coming 24 hours.

We expect a range today of 0.8250 – 0.8350

Great British Pound
In minutes released from the Bank of England’s February meeting, details published overnight showed that seven of the nine-member Monetary Policy Committee voted to raise the asset-purchase target by 50 billion pounds with the other two members voting for a larger 75 billion pound increase. Whilst it was agreed that the larger of the two increases may of provoked alarm on the economy the Great British pound was immediately sold-off last night, given the perceived stimulus the UK economy may need moving forward. After initially starting the day at a rate of 1.5775, traders sold the Sterling to an eventual low of 1.5647 opening this morning more than a cent lower against its US Counterpart. Meanwhile on the cross-rates this morning the Great British Pound opens noticeably lower against both the Australian Dollar (1.4730) and the New Zealand Dollar (1.8892)

We expect a range today of 1.4670 – 1.4790

Majors
In a busy session for markets overnight, global equities finished in the red following a string of data releases out of Europe which failed to match expectations. Whilst European Industrial new orders for the month of January came in well above forecast, recording growth of 1.9 percent, flash Manufacturing and Services PMI both disappointed markets. With the 17-nation Euro-zone now well and truly shrouded by the cloud of the recession the recent wave of poor releases has only succeeded in further dampening investor sentiment. Despite world indexes all finishing lower the Euro managed to find some solid footing following its significant drop overnight Tuesday trading between a 24 hour range of (1.3210-1.3266) against its US Counterpart. With markets seemingly tired of all the Greek talks which have dominated headlines over the past weeks some respite was found out of the US overnight where sales of previously owned US homes rose in January to the highest level seen since May 2010, increasing by an impressive 4.3 percent. Also benefitting from improved US fundamentals the Greenback continued its advance against the Japanese Yen reaching the highest level we’ve seen since August last year, opening at a rate of 80.224

Data releases

AUD:
No Data Today

NZD: No Data Today

JPY:
No Data Today

GBP: CBI Industrial Order Expectations,

EUR:
German Ifo Business Climate

USD:
Unemployment Claims, EFHEO HPI m/m, Existing Home Sales