Australian Dollar:

In what was a mixed bag of local data released yesterday Australia’s Trade Surplus narrowed more than economists forecast for the month of September with exports exceeding imports by 2.56 billion, whilst a private report showed business confidence strengthened to a five month high in October. After initially opening at a rate of 1.0377 against its US Counterpart, the Australian Dollar was sold throughout the domestic session reaching an eventual low of 1.0281 before regaining its earlier losses as European Markets kicked off for the day. Providing some much needed support for the Aussie, investors snapped up the higher yielding currency throughout the evening following reports that Italian Prime Minister Silvio Berlusconi has agreed to resign as the Australian Dollar opens stronger this morning at a rate of 1.0382

We expect a range today of 1.0290 – 1.0410

New Zealand Dollar:

The New Zealand Dollar remained range bound for the majority of yesterday’s session trading between a 24 hour low of 0.7922 and a high of 0.7989 against its US Counterpart. With some clear resistance now marked around the 80 US Cents level, investors are set to remain on the side-lines in the short-term until some further clarity over Europe’s Debt is established. Providing support for the Kiwi yesterday local equities finished around 0.3 percent higher, commodities were stronger whilst global risk sentiment turned positive following the announcement that the Italian PM has promised to resign after parliament passes economic reforms demanded by the European Union. Looking ahead this morning the New Zealand Dollar opens stronger currently buying 79.78 US Cents.

We expect a range today of 0.7910 – 0.8030

Great British Pound:

UK Stocks rallied for the first time in three days yesterday as the Sterling opens noticeably stronger against its US Counterpart this morning at rate of 1.6109. After earlier trading to a 24 hour low of 1.6034 the Great British Pound followed the FTSE 100 Index higher with a raft of strong corporate numbers helping renew optimism that the market remains relatively robust despite the ongoing concerns surrounding the broader Europe. Providing further support for the Sterling yesterday was the planned resignation of Italian PM Silvio Berlusconi as the Sterling opens stronger against both the Australian Dollar (1.5512) and the New Zealand Dollar (2.0176).

We expect a range today of 1.5440 – 1.5610

Majors:

US Stocks rallied, the S&P 500 climbed 0.5 percent and the EURO rose yesterday as optimism blossomed throughout financial markets. In what has come as a sigh of relief for many investors Italian Prime Minister Silvio Berlusconi has agreed to step down after the PM failed to muster an absolute majority during a routine parliamentary ballot, obtaining only 308 votes in the 630-seat Chamber. As a result a successor is due to be announced once the parliament approves the countries austerity measures, with fresh hope that a change in leadership will help side-line fears of further contagion throughout the region. Following the announcement the EURO rallied to reach an eventual high of 1.3846 against its US Counterpart opening half a cent higher this morning at a rate of 1.3827. Meanwhile in the US overnight Berlusconi’s offer to quit was also well received with financial shares being the major benefactor pushing the Dow Jones higher by 0.7 percent. Meanwhile this morning the Greenback opens stronger against the Japanese Yen at a rate of 77.691

Data releases

AUD: Westpac Consumer Confidence

NZD: No Data Today

JPY: Bank Lending y/y, Current Account

GBP: BRC Shop Price Index y/y, Trade Balance

EUR: French Gov Budget Balance

USD: Fed Chairman Bernanke Speaks, Wholesale inventories m/m, FOMC Member Tarullo Speaks, Loan Office Survey