Australian Dollar
Supported by firmer stocks in China and a lack of liquidity in the US overnight the Australian dollar has moved higher over the past 24hours. Trading to highs of 1.0383 against its US Counterpart, the Greenback finished the session broadly weaker as investors made a move back towards riskier positions upon signs the worst of Hurricane Sandy had passed. With sellers lining up around the 1.0380 mark well established resistance at 1.0400 is unlikely to be cracked in the short-term as markets continue to search for clues on the prospect of a November rate cut given inflationary data did exceed forecast last month. On the more immediate front building approvals due for release locally today will warrant some attention with the opening of Wall Street following two days of closures also likely trigger a response from investors. Meanwhile this morning the Aussie opens a third of cent stronger at 1.0362.

We expect a range today of 1.0330 – 1.0390

New Zealand Dollar
Markets have remained in a lacklustre mood over the past 24 hours as Wall Street remained closed due to Hurricane Sandy. Whilst any strength in the Dow is usually a positive sign for the Kiwi the New Zealand dollar has remained directionless in the absence of US equities and domestic happenings. Keeping in mind traders are opting for the wait and see approach ahead of key US elections which are set to get underway Nov.6, Building consents due for release this morning may provide some minor support for the currency which is recognised as a growth asset given Christchurch continues to rebuild its infrastructure. Poking its head above the 82 US Cents mark overnight the New Zealand reached highs of 0.8233 as the Kiwi opens this morning marginally higher currently buying 82.07 US Cents.

We expect a range today of 0.8180 – 0.8230

Great British Pound:
In figures released overnight UK Retailers reported a strong rise in sales volumes in the year to October as the CBI Index comfortably beat the majority of estimates. With UK Stocks also rising after a handful of strong earnings reports it came as no surprise to see the Great British Pound strengthening against its US Counterpart. Firming to highs of 1.6072 some solid support above the 1.60 handle has now been established. Meanwhile on the cross rates this morning the performance of the Sterling wasn’t as solid as it opens flat against both the Australian dollar (1.5509) and the New Zealand Dollar (1.9580).

We expect a range today of 1.5470 – 1.5530

Majors:
The US Dollar dropped against all of its major counterparties overnight as European Stocks rallied triggering a slight shift away from safe-haven assets. With Hurricane Sandy wrecking havoc throughout New York, US Stock Markets remained closed forcing investors to sit on the sidelines in an environment already low on liquidity. Speaking of liquidity the Japanese Yen strengthened against its US Counterpart after the Bank of Japan added less Stimulus than some economists had forecast. Strengthening the Yen across the board the BOJ added 11 trillion Yen to their asset purchase scheme squashing speculation that the Central Bank may have taken more radical action. Meanwhile in Europe overnight the Shared Unit rallied to a high of 1.2982 well supported by a weaker US Currency as well as news that Spain’s Government budget deficit narrowed in September to 4.39 percent of GDP. Improving optimism that budget objectives are being met, containing the Euro to sub 1.30 levels can be largely put down to ongoing squabbles surrounding Greek bailout payments which still need to be approved by the EU and the IMF.

Data releases

AUD:
Building Approvals m/m, Private Sector Credit m/m

NZD: Building Consents m/m

JPY:
Manufacturing PMI, Average Cash Earnings y/y

GBP: No Data Today

EUR:
German Retails Sales m/m, French Consumer Spending m/m, Eurogroup Meetings, Unemployment Rate

USD:
Chicago PMI