Australian Dollar
In an eventful day of trading yesterday Australia’s Central Bank kept its benchmark interest rate unchanged at 4.25 percent whilst Australian Retail Sales also matched the majority of forecast advancing 0.2 percent for the month of February. Signalling a willingness to ease Monetary Policy should weaker than expected growth figures eventuate the Australian Dollar immediately dropped around 30 basis following the announcement as it struggled to maintain levels above the 1.04 handle. With RBA Governor Glenn Stevens accompanying statement leaning more towards the dovish direction, potential interest rate cuts of around 50 basis points for the coming 12 months is now in line with expectation. Trading to an overnight low of 1.03 against its US Counterpart attention is likely to remain on domestic releases today with Trade Balance figures due to be announced at 10:30am. Meanwhile this morning the Aussie opens one cent lower currently swapping hands at a rate of 1.0327

We expect a range today of 1.0280 - 1.0380

New Zealand Dollar
The New Zealand dollar traded sideways for much of yesterday’s local session with Asian equities closing flat, failing to provide any real support for the higher-yielding currency. After opening the day at rate of 0.8229 against its US counterpart the Kiwi was dragged lower overnight by an overall stronger Greenback which was the major benefactor of Minutes which were released from last month’s US Federal Reserve meeting. With the Fed Reserve essentially squashing any hopes of a fresh liquidity boost for markets, investors shied away from the commodity backed currency taking it to an overnight low of 0.8165. In a shortened week of trade the Kiwi appears unlikely to break free of its recent range between 0.8150 – 0.8250 as the New Zealand dollar opens weaker this morning currently buying 81.87 US Cents

We expect a range today of 0.8120 – 0.8220

Great British Pound
Despite the release of construction PMI figures which showed new orders for the nations builders rose at their fastest rate in over four years, this was not enough to maintain the recent strength of the Sterling. With local equities falling, the noticeable shift back into the Greenback following minutes released from the US Federal Reserve’s most recent meeting did little to help the cause of the Great British Pound which subsequently fell to an overnight low of 1.5890 against its US Counterpart. Opening this morning at a rate of 1.5907, the 1.60 level again appears to be a major stepping stone towards a more sustained advance. A quick look at the cross reveals a mixed fortune for the Sterling which strengthened against the Australian dollar (1.5400) whilst falling against a relatively steady New Zealand Dollar (1.9420).

We expect a range today of 1.5340 – 1.5450

Majors:
US Stocks fell, treasuries and gold tumbled whilst investors snapped up what they could of the Greenback in eventful evening of trade. Dominating headlines overnight in Minutes released from the US Federal Reserve’s most recent meeting central bankers saw no need for further monetary stimulus hence lowering the appeal of equities and bonds alike that fresh liquidity usually brings. With no more artificial sweetener being applied to markets Fed Chairman Ben S Bernanke was keen to point out however that the Central Bank would still keep their finger on the pulse should economic conditions worsen. Following the release, the Greenback managed to find some upside against the majority of its major peers opening stronger against the Japanese Yen this morning at a rate of 82.811. Meanwhile throughout Europe overnight compounding the recent woes for the 17-Nation Euro final quarter GDP came in at 0.3 percent, in line with expectation. All things considered it was no surprise to see the Euro fall away overnight and after trading between a 24 hour range of (1.3212 -1.3366) against its US Counterpart it opens noticeably weaker this morning opening at a rate of 1.3230.

Data releases

AUD:
AIG Services Index, Trade Balance

NZD: No Data Today

JPY:
No Data Today

GBP: Services PMI, Halifax HPI m/m, Services PMI

EUR:
Final Services PMI, Retail Sales m/m, German Factory Orders m/m, Minimum Bid Rate, ECB Press Conference

USD:
ISM non-manufacturing PMI, ADP Non-Farm employment Change