Australian Dollar
The Australian dollar continued its recent slide for much Friday’s session trading as a low as 1.0341 against its US Counterpart. In what was an overall bearish week for the Aussie Unit bottom side support has again been established around the 1.0280 level. Following an overall sluggish 24 hours disappointing Chicago PMI figures out of the US were offset by global equities which continued their advance with the S&P 500 gaining 12 percent in the first quarter of 2012. Meanwhile today in what has been a monumental shift towards the Australian dollar; Chinese PMI data released over the weekend has seen the Aussie spike more than a full cent this morning as we open at a rate of 1.0445. With official PMI figures coming in well above expectation demand for the higher-yielding asset has been strong in low-liquidity pre-Asian market trading as its likely markets will remain volatile over the coming 24 hours given the AIG Manufacturing Index and Building approvals are also due for release this morning

We expect a range today of 1.0380 -1.0520

New Zealand Dollar
It was a solid day of accumulation for the New Zealand dollar on Friday as it climbed from an earlier low of 0.8164 against its US Counterpart. Whilst Building Consents for the month of February came in well below expectation, stronger commodities, global equity gains as well as better than forecast manufacturing figures out of China have all combined well to help spur demand for the asset deemed riskier in nature. Opening noticeably higher this morning, currently buying 82.32 US Cents the New Zealand dollar is likely to continue to take direction not only from global risk flows but also data happenings out of China in what is a shortened week of trade given the Easter Long-weekend

We expect a range today of 0.8160 – 0.8280

Great British Pound
The Great British Pound opens noticeably stronger against its US Counterpart this morning at a rate of 1.6005. Having broken through the critical 1.6000 level, this week is shaping up as a interesting one for the Sterling given the Bank of England are set to maintain the size of their bond-buying program when Policy Makers meet on Thursday. With very clear divisions becoming apparent as to whether the UK economy actually warrants further stimulus the Sterling has been further bolstered over the course of the weekend as Chinese manufacturing data comfortably beat forecast. Despite its recent strength against the Greenback the Sterling has failed to keep pace with both a stronger Australian and New Zealand dollar as a brief look at the crosses reveals a slight pull back, opening weaker this morning at a rate of 1.5328 and 1.9445 respectively.

We expect a range today of 1.5280 -1.5380

Majors:
In a busy session for currency markets on Friday, US Data flows were relatively mixed. Despite Consumer sentiment in the world’s largest economy improving for the month of February Chicago PMI figures disappointed markets with the reading of 62.2 coming in well below the expected 63.2 figure. Whilst global equities managed to run out of puff this past week the S&P 500 still managed to finish the first quarter 12 precent higher. Adding to the positive sentiment across markets over the weekend European Policy Makers increased the total size of their firewall to 800 billion Euro’s, adding to the 102 billion Euro’s already paid to support the current rescue program. Whilst very real fears still exist that Greece may need to restructure the ECB has also added fuel to fire by stating that a bigger firewall will not necessarily solve the fiscal crisis. Despite such whispers the 17 Nation Euro overall enjoyed a positive session trading between a 24 hour range of 1.3297 – 1.3376 against its US Counterpart as it opens stronger this morning at a rate of 1.3358. Looking ahead this week Central Banks, including the ECB and BOE are expected to keep their respective monetary stances unchanged with underlying currency movements likely to be elevated given the four day weekend approaching

Data releases

AUD:
AIG Manufacturing Index, MI Inflation gauge m/m, Building Approvals m/m, Commodity Prices y/y

NZD: No Data Today

JPY:
Tankan Manufacturing Index, Tankan Non-manufacturing Index

GBP: Manufacturing PMI, Housing Equity Withdrawal q/q

EUR:
Final Manufacturing PMI, Italian Monthly Unemployment Rate, Unemployment Rate

USD:
ISM Manufacturing PMI, Construction Spending m/m, ISM Manufacturing Prices