Australian Dollar:
The Australian dollar fell against its US Counterpart yesterday after the Nations Trade Balance unexpectedly posted a $480m deficit in February. With yesterday’s deficit being only the second consecutive shortfall seen in two years it was the underlying drop in Export demand which has again boosted calls for the RBA to lower rates at the May 1 Policy Meeting. Following a day in which riskier-backed assets were sold across the board the Australian dollar traded to 11 week low of 1.0242 against its US Counterpart. With the fall-out still continuing from the US Federal Reserve’s decision not to provide any further monetary stimulus, risk aversion and greenback strength have both contributed to the woes of the Aussie this week. Meanwhile this morning the Australian dollar opens weaker currently swapping hands at a rate of 1.0263

We expect a range today of 1.0210 – 1.0320

New Zealand Dollar
In another bearish day of trade for the New Zealand dollar stocks and commodities all slid for a second consecutive day as concerns over global growth prospects were again casting a significant cloud over markets. Given the US Fed’s reluctance to add any further liquidity into the market investors have steered well and truly clear of the New Zealand dollar for much of this week which has seen the Nations currency trade as low 0.8123 against its US Counterpart. Given the shortened week and the US unemployment figures which are due release Friday it’s unlikely we will see any real attraction to the kiwi in the short-term as we open this morning around 40 basis points lower than yesterday currently buying 81.44 US Cents.

We expect a range today of 0.8100 – 0.8200

Great British Pound
In a report released yesterday UK house prices rose the most in almost three years in March jumping a solid 2.2 percent from February. Boosted by demand from the first home-buyer this is the largest monthly increase seen since May 2009. Despite the strong reading the Great British Pound again fell victim to ongoing concerns surrounding global growth prospects whilst surging bond yields throughout Europe have done little to help. After starting the day at a rate of 1.5910 against its US Counterpart such levels proved too hard to maintain as the Sterling drifted lower to where we open this morning at a rate of 1.5884. Looking ahead today the Bank of England are set to meet this evening and whilst it’s unlikely further stimulus will be provided the decision remains far from unanimous as to whether the state of the British economy does in fact warrant some sort of additional aid.

We expect a range today of 1.5410 – 1.5520

Majors:
Despite a ADP Employer Services report released out of the US showing companies expanded payrolls by 209,000 following a revised gain of 230,000 in February, this was not enough to sway investors as markets continue to come to terms with the fact the steady stream of liquidity in the form of quantitative easing from the US Federal Reserve is likely to shortly dry up. With global stocks falling and commodities also losing ground investors sold anything deemed riskier in nature which all pointed towards a stronger Greenback. Further adding to the bearish note across markets overnight Spanish 10-year yields surged 24 basis points to 5.69 percent whilst Portuguese and Italian yields also blew out. In a meeting held in Frankfurt overnight the ECB kept the benchmark interest rate unchanged at a record low of 1 percent whilst ECB President re-iterated the Central Banks outlook is still subject to downside risk. All in all with the S&P 500 also losing around 1 percent this could only mean one thing for the EURO which was sold down from an opening rate of 1.3231 to reach an eventual low of 1.3140 against its US Counterpart. Looking ahead for the remainder of the week markets are likely to remain skittish ahead of US non-farm payroll data which is due for release on the evening of Good Friday.

Data releases

AUD:
No Data Today

NZD: No Data Today

JPY:
No Data Today

GBP: Official Bank Rate, MPC Rate Statement

EUR:
German Industrial Average m/m

USD:
Challenger Job Cuts y/y, Unemployment Claims