Australian Dollar
The Australian dollar continued its advance yesterday, strengthening to its highest level in 11 weeks against its US Counterpart. Whilst the NAB quarterly business survey showed confidence had dived in the June quarter, local equities enjoyed their biggest one-day rally since January as investors took heart from improved corporate earnings out of the US. Trading to an overnight high of 1.0443 against the Greenback the Australian dollar has done very well to consolidate such gains opening this morning half a cent stronger at 1.0423. With ongoing Eurogroup Meetings set to continue over the weekend, given the rapid rise we have seen in the higher yielding currency the big question mark remains as to whether interim support above the 1.04 level can hold. Meanwhile on the Cross Rates the Australian dollar reached an all time high against the EURO whilst also trading to the highest level since March against the Sterling

We expect a range today of 1.0360 – 1.0450

New Zealand Dollar
The New Zealand Dollar enjoyed a positive session yesterday and after starting the day clinging to the psychologically important 80 US Cents Level has strengthened for much of the past 24 hours. Despite US Figures overnight disappointing investors, continued signs of weakness throughout the housing, labour and manufacturing sectors have only increased bets that the US Federal Reserve will provide more stimulus measures in the form of QE3. Meanwhile this morning after trading as high 0.8054 overnight the Kiwi opens noticeably stronger as it currently buys 80.26 US Cents

We expect a range today of 0.7980 - 0.8070

Great British Pound:
In figures released overnight Retail Sales for the month of June grew at the modest pace of 0.1 percent, well below the expected reading of 0.6. Highlighting the impact of Europe’s recession as well as the overall wet summer such readings only add to the very long-list of disappointing readings seen over the past month. Despite the announcement the Great British Pound has traded broadly higher for much of the past 24 hours, well buoyed by better than expected US Corporate earnings. With the FTSE 100 Index rising 0.5 percent the Sterling traded as high as1.5736 against its US Counterpart, opening this morning stronger at 1.5720. Whilst higher against the Greenback it has been a mixed performance for the Sterling on the Cross Rates opening stronger against the Kiwi (1.9573) however weaker against the Aussie (1.5079)

We expect a range today of 1.5020 – 1.5120

Majors:
US Stocks rose sending the S&P 500 Index to a two-month high as corporate earnings around the globe surprised investors. Whilst commodities also gained momentum a string of disappointing readings out of the US in the form of Existing Home Sales, Philly Fed Manufacturing as well as weekly Unemployment Claims has only increased bets that the US Federal Reserve will add further stimulus next month. With investors becoming increasingly obsessed with the notion of added liquidity in the form of QE3, it’s interesting to note weak US fundamentals are only adding to their hopes. Meanwhile throughout Europe, the 17-Nation Euro came under some renewed selling pressure as Spanish 10-yr Bond Yields again spiked above the unsustainable 7 percent level. After trading between a 24 hour range of (1.2228 – 1.2323) against its US Counterpart we open this morning overall lower at 1.2275. Looking ahead this evening the focus will again remain on US Corporate Earnings which are in full-swing with Euro-group meetings also expected to kick off.

Data releases

AUD:
RBA Assist Gov Kent Speaks, Import prices q/q

NZD: Visitors Arrivals m/m, Credit Card Spending y/y

JPY:
No Data Today

GBP: Public Sector Net Borrowing

EUR:
Eurogroup Meeting

USD:
No Data Today