Australian Dollar:

The Australian Dollar trended lower against its US Counterpart yesterday following a private report which showed job notices in Australia fell in October, for a fourth straight month by 0.7 percent. Dampening demand for the higher yielding currency the Australian Dollar fell further throughout the offshore session as investors moved away from riskier assets following reports that Italian borrowing costs have surged to a 10 –year high. Having touched briefly a rate 1.0275 against the Greenback overnight the Australian Dollar opens around 20 basis points lower this morning, currently trading at a rate of 1.0372. In what is shaping up as a busy week on the Australian Economic Calender, proceedings are kicked started today with Trade Balance figures due for release at 11:30am this morning.

We expect a range today of 1.0260 – 1.0440

New Zealand Dollar:

It was again Europe which stole the limelight yesterday, local Equities trended lower as the kiwi trickled to an intraday low of 0.7915 against its US Counterpart. With nothing in the form of local data to offer the nation’s currency any real direction, the main agenda still lies within Europe as Italy’s 10 year bond yield rose to its highest level in 14 years as investors start to ask the question as whether Italy can afford to service its ballooning debt commitments. This morning sees the New Zealand Dollar open relatively unchanged from the same time yesterday at a rate of 0.7972 having traded within a tight 24 hour range of less than one US Cent the Kiwi appears well supported above the 0.7900 level

We expect a range today of 0.7890 – 0.7995

Great British Pound

In positive news flows released out of the UK overnight UK House Prices increased in October for the first time in three months according to Halifax, with prices accelerating 1.2 percent from September. As the Sterling struggled to distance itself from the woes of its European neighbours the Great British Pound traded to an overnight high of 1.6078 against its US Counterpart, rebounding well from its earlier lows of 1.5978. All eyes will be on the Bank of England come Thursday this week where despite the housing market remaining relatively resilient the Central is widely expected to hold its key interest rate unchanged at a record low of 0.5 percent. Meanwhile this morning the Sterling opens lower against the Greenback and the Kiwi however stronger against the Australian Dollar at a rate of 1.5471.

We expect a range today of 1.5380 – 1.5550

Majors:

European Stocks tracked lower yesterday after Italian benchmark yields climbed to a euro-area all time high amid renewed concerns that Europe’s third-largest economy will struggle to repay its ballooning level of debt. Whilst there remain very real fears that Italy may soon become the new Greece, the likelihood of a Greek Default have subsided with the news overnight that Greek Prime Minister George Papandreou will stand down and assist policy makers to help form a new unified government to ensure the Nation receives the crucial bailout funds promised by European powerbrokers. Following the mixed news flows out the Region the EURO lost considerable ground against its US Counterpart trading as low as 1.3680, before opening this morning half a cent lower at a rate of 1.3771. In the US overnight US Stocks recovered from earlier losses as Juergen Stark, The European Central Banks President said that the ongoing European debt crisis will be under control in two years. Looking ahead today the recent theme of trading off headlines is likely to continue with the EURO and Greenbacks direction very much dictated by European news flows. Following a relatively flat day the Greenback opens weaker against the Japanese Yen this morning at a rate of 78.056

Data releases

AUD: Trade Balance, NAB Business Confidence

NZD: No Data Today

JPY: No Data Today

GBP: DRC Retail Sales Monitor y/y, RICS House Price Balance, Manufacturing Production m/m, Industrial Production m/m

EUR: German Trade Balance, French Trade Balance, ECOFIN Meetings

USD: IBD/TIPP Economic Optimism, FOMC Member Kocherlakota Speaks, FOMC Member Plosser Speaks