Australian Dollar
Following a relatively flat start to the day the Australian Dollar came to life in mid afternoon trade, as it was pushed higher by improved global risk sentiment as well as local building approvals which beat market expectations. After starting the day at a rate of 1.0236 against its US Counterpart, consistent upside for the Aussie Dollar saw investors rallying behind the Nations Currency pushing it to an overnight high of 1.0350. With the Australian Dollar also being the major benefactor of strong US Data as well as upbeat US Corporate earnings, this morning sees the Higher-Yielding Currency open a full cent stronger against the Greenback currently swapping hands at a rate of 1.0323.

We expect a range today of 1.0250 – 1.0380

New Zealand Dollar
The New Zealand Dollar opens stronger against its US Counterpart this morning and is currently buying 79.42 US Cents. In what was a very positive session for the Kiwi, intraday demand for the Nations Currency was initially triggered by good news from China in the form of improved Chinese Trade Data which showed exports rose 13.4 percent last month. As the Kiwi entered the offshore session, investors drove the kiwi up even higher as it touched 0.7964, the highest level seen since November last year. In what has been a remarkable month for the Kiwi, the higher-yielding currency has now managed to appreciate close to 5 percent against its US Counterpart since mid-December last year.

We expect a range today of 0.7880 - 0.7990

Great British Pound
A UK House-Price Index released yesterday showed the property market continued to face serious strains as UK house prices fell 0.9 percent in December, the lowest level since July 2009. Despite the disappointing housing data however the Sterling did manage to advance yesterday, driven by a strong start to the US Corporate Earnings Season and an overall return to positive risk sentiment. Having started the day at a rate of 1.5460 against its US Counterpart the Great British Pound did manage some upside, trading as high 1.5500 late in the session. In what has been a relatively slow start to the year for the Sterling, the Nation’s currency opens noticeably lower against both the Australian Dollar (1.5002) and the New Zealand Dollar (1.9497).

We expect a range today of 1.4920 – 1.5080

Majors
US Corporate Earnings Season kicked off with a bang overnight, with US aluminium giant Alcoa announcing a full-year profit more than double the profit of the previous year. Adding to the already positive mood throughout markets, the S&P 500 advanced 0.9 percent yesterday to its highest level seen in five months. As anticipated the Greenback lost ground against 15 of its 16 major peers, with the exception of the Japanese Yen in which it opens stronger against this morning at a rate of 76.8050. In news out of China overnight fuelling bets that the Government will shortly undertake an easing stance towards Monetary and Fiscal in an attempt to spur growth, Trade Balance figures showed that import growth slowed to two-year low in December. With the market clearly benefitting from stronger US Fundamentals of late as well as a lack of focus on Europe, the EURO also advanced against its US Counterpart and after trading between a 24-hour range of (1.2742 -1.2817), opens slightly stronger this morning at a rate of 1.2789. Looking ahead this evening attention will likely turn to EURO-Zone GDP Figures with the final quarter of 2011 tipped to return a very modest growth figure of 0.2 percent.

Data releases

AUD:
No Data Today

NZD: No Data Today

JPY:
Leading Indicators

GBP: Trade Balance

EUR:
Final GDP q/q

USD:
Beige Book