Australian Dollar
In a very bumpy ride for the Australian dollar last week, the higher yielding asset traded in a shaky three cent range against its US Counterpart. With global equity markets returning to positive territory on Friday the Australian dollar travelled higher for much of the day reaching an eventual high of 1.0482. Having breached the critical 1.04 level earlier in the day markets are expected to open flat this morning following some more dull news out of Europe that the ECB will look to further insulate themselves from potential contagion fears. With softer data out of China also plaguing the Aussie for much of last week we find ourselves opening noticeably lower this week albeit higher than where we took off Friday as the Australian dollar currently trades at a rate of 1.0464.

We expect a range today of 1.0420 – 1.0500

New Zealand Dollar
The New Zealand dollar managed to find some upside against its US Counterpart on Friday ending what was a tough week for global markets. As investors tussled with further evidence that global growth is starting to wain, riskier-backed assets such as the New Zealand dollar suffered at the hands of global risk-flows. Whilst it was a rollercoaster ride, the Kiwi traded to a 24hour of high of 0.8188 against its US Counterpart, almost a full cent higher than its earlier low. Despite US housing data disappointing the market during overnight trade, rumours that Spain could reignite the European Debt-Crisis also did little dampen the progress of the Kiwi as it opens this morning noticeably stronger currently buying 81.75 US Cents.

We expect a range today of 0.8130 – 0.8230

Great British Pound
Consumers in the UK were less confident about the direction of their country’s economy in February, a Nationwide Building society poll published on Friday showed. Despite the overall Index falling from 47.0 in January down to 44.00 in February The Great British Pound did well to hold its ground against the Greenback on Friday trading between a 24 hour range of (1.5804 – 1.5908). This morning sees the Sterling open around half a cent stronger than where we started Friday currently swapping hands at a rate of 1.5864. In what is shaping up as a busy week for the Sterling domestic news flows are highlighted by Final GDP figures which are due for release on Wednesday. Meanwhile a quick look at the cross-rates this morning reveals a noticeable drop for the Sterling against both the Kiwi (1.9383) and the Aussie (1.5151) which both open weaker.

We expect a range today of 1.5050 – 1.5210

Majors:
Headlining news flows overnight Friday, Italy’s Prime Minister Mario Monti warned that Spain has the potential to re-ignite European Sovereign Debt concerns as Spain’s 10-year bond yields climbed for a third straight week. Highlighting the underlying vulnerabilities for the 17-Nation Euro, Finance ministers are set to meet in Copenhagen on March 30 to seek an agreement to lift the existing ceiling on bailout funding to create an even greater firewall should contagion fears eventuate. In a shaky week for global markets the Euro has remained relatively resilient, trading between a range of (1.3189 – 1.3292) against its US Counterpart on Friday. Further compounding the dull news out of Europe US new home sales also came in below expectation with home purchases falling for of second consecutive month. Whist overall sales dropped 1.6 percent, the prognosis for the US housing market remains relatively upbeat. On the currency front the Greenback remains very well supported as investors still remain slightly jittery over the market’s direction as it opens stronger against the Japanese Yen this morning at a rate of 82.324.

Data releases

AUD:
RBA Gov Stevens Speaks

NZD: Westpac Consumer Sentiment

JPY:
No Data Today

GBP: No Data Today

EUR:
Current Account

USD:
FOMC Member Dudley speaks, NAHB Housing Market Index,