Australian Dollar
The Aussie rallied to an intraday high on Thursday of US104 cents after Chinese economic data revealed manufacturing growth. The Purchasing Managers Index (PMI) came in at 50.4 in November compared with 49.5 in October. A reading above 50 indicates expansion. The unit entered the European session trading around 1.0375 before hitting an offshore high of 1.0390 where it ran into some resistance. Volumes were very light offshore as markets were closed in the United States for Thanksgiving Day. Meanwhile, the Aussie opens lower against the Euro at 0.8060.

We expect a range today of 1.0360 – 1.0415

New Zealand Dollar
The kiwi spent another local session in a fairly tight range between 0.8130 and an intraday high of 0.8164. The only local economic data release yesterday showed a small decline in credit card spending for the month of October which had very little impact on the currency. Stronger-than-expected Chinese manufacturing data provided some support for the kiwi ahead of a very light offshore session as markets were closed in the United States for Thanksgiving Day. Against the greenback, the kiwi opens this morning at 0.8150 and against the Australian Dollar at 0.7835.

We expect a range today of 0.8135 – 0.8175

Great Britain Pound
Pound Sterling (1.5934) opens little-changed against the greenback today but did manage to hit a two-week high of 1.5977 early in the session as manufacturing data in China showed expansion. UK equities rose for a fourth consecutive session which also supported the currency. Volumes were thinner than usual owing to a US public holiday for Thanksgiving. As economic headwinds remain for the UK, any rallies in the pound are likely to sold into. Meanwhile, the pound opens lower against both the Australian Dollar (1.5330) and the New Zealand Dollar (1.9530)

We expect a range today of 1.5320 – 1.5380

Majors
Markets were closed in the United States for Thanksgiving Day but this did not prevent the Euro from hitting a two-week high of 1.2897 against the greenback. Equity markets moved higher in France, Germany and Spain and the positive sentiment flowed through to the 17-nation currency. Also providing support was a better-than-expected survey of Euro-zone purchasing managers. The index came in at 45.8 in November compared to 45.7 in October. Meanwhile, the Japanese Yen (82.40) opens marginally stronger against the big dollar today after trading at fresh seven-month lows (82.82) overnight. The Yen has weakened in recent weeks on speculation that a change of government next month could fuel more aggressive monetary easing and undermine the currency.

Data releases

AUD: No data today

NZD: No data today

JPY: No data today

GBP: BBA Loans for home purchase

EUR: German GDP, Q3; German IFO Business Climate (Nov)

USD: No data today

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