Australian Dollar
In minutes released from the Reserve Bank of Australia’s most recent meeting in which interest rates were left on hold Governor Glenn Stevens remained relatively upbeat in regards to Australia’s economic outlook stating that downside risks have become somewhat less likely during the early parts of this year. Following the release, the Australian dollar initially rallied to a mid morning high of 1.0624 against its US Counterpart. Despite some positive signs early on the Australian dollar managed to lose some considerable ground as it entered the offshore session, dropping for the first time in four days on speculation that China’s economic growth will slow, dampening demand for the South Pacific’s commodities. Whilst concerns were also highlighted by comments from BHP boss that steel production is starting to slow. To cap what has been a monumental shift away from the higher-yielding currency the Aussie opens this morning a full cent lower at a rate of 1.0478

We expect a range today of 1.0420 – 1.0530

New Zealand Dollar
Dominating headlines across Asia yesterday, the world’s largest mining company BHP Billiton Ltd said China’s steel production is slowing as the world’s fastest-growing major economy shifts its focus on building consumer demand ahead of large scale building projects. Whilst it’s predicted the demand for big infrastructure will slowly wain the comments sent shockwaves throughout markets yesterday as fresh concerns surfaced over the possible demand for the Nations rich commodity base. Following the announcement the New Zealand dollar was immediately sold off across the board and after trading to an early session high of 0.8267 against its US Counterpart the kiwi shed a full cent to reach an eventual low of 0.8168. With a string of tier 2 data releases due out of New Zealand this morning attention is likely to turn slightly more towards local happenings as the Kiwi currently buys 81.68 US Cents

We expect a range today of 0.8120 – 0.8220

Great British Pound
In figures released overnight Consumer Prices rose 3.4 percent from a year earlier, the least since November 2010. Whilst price pressures were slightly above the median forecast higher alcohol and food prices are being blamed for the increase. In what was an overall busy session for the Sterling an index for manufacturing expectations also surged whilst factory orders slumped to minus 8 from minus 3 a month earlier. Combine a mixed bunch of local fundamentals with a less than optimistic outlook for China and the Sterling, whilst still performing better than a handful of other major currencies opens this morning around 30 basis points lower against its US Counterpart at a rate of 1.5855. Looking ahead this week the Great British Pound has some considerable ground to cover if it’s to break through the critical 1.60 level as investors await the release of the Bank of England minutes from the Central Banks most recent meeting

We expect a range today of 1.5070 – 1.5200

Majors
Commodities and Stocks fell yesterday pulling the Standard & Poor’s 500 Index down from an almost four-year high as concern mounted that economic growth throughout China is likely to slow. BHP Billiton Ltd in a statement made yesterday further fuelled the argument by saying that Steel production is starting to slow which is likely to have a widespread negative impact on commodity backed currencies in the short-term. Jumping across to the US, data releases were kicked started this week by Housing Starts which hovered near a three-year high for the month of February as new building permits also came in on expectation with 698 000 new homes being built. Whilst investors continue see minor signs of strength out the Nations weakest sector new and existing home sales data due for release later this week which should provide some further insight. In what has been a very quiet week throughout the Euro-Zone, markets have enjoyed the change of focus with debt talks out of Greece taking a backseat. Looking ahead over the course of the next 24 hours the Region’s largest economies both France and Germany have a string of data releases this evening which are likely to provide some direction for 17-nation EURO which traded between a low of 1.3171 and a high of 1.3251 against its US Counterpart, opening flat this morning at a rate of 1.3219

Data releases

AUD:
MI Leading Index m/m

NZD: Credit Card Spending y/y

JPY:
All Industries Activity m/m

GBP: MPC Meeting Minutes, Public Sector Net Borrowing, Annual Budget Release

EUR:
No Data Today

USD:
Fed Chairman Bernanke Testifies, Existing Home Sales, FOMC Member Tarullo Speaks