Australian Dollar:

The Australian Dollar opens noticeably higher this morning against its US Counterpart at a rate of 0.9876 with the local share market snapping six consecutive days of losses. Spurring demand for riskier assets yesterday European Leaders drafted a framework for the regions bail-out fund as officials appear to be moving at a much faster pace recently. Following the positive news flows out of Europe the Australian Dollar rallied at its fastest pace in over month reaching an overnight high of 0.9975 against the Greenback, a full 2 percent higher than its lows late last week. Whilst optimism has grown that European Powerbrokers may have turned the corner any advancement above parity appears unlikely in the short-term until the finer details of a potential bail-out fund become known to the market

We expect a range today of 0.9810 – 0.9940

New Zealand Dollar:

The National Bank Business Outlook Survey yesterday showed business confidence improved this month with the reading of 18.3 well above the previous months reading of 13.2. Whilst there does appear evidence to suggest that New Zealand’s growth prospects are improving, optimism was further buoyed overnight with European Leaders making significant progress in their efforts to detail their most recent bailout package. In what proved to be session of renewed confidence the Kiwi traded between a 24 hour range of 0.7478 – 0.7573 against its US Counterpart to open around 30

Basis points stronger this morning at a rate of 0.7537.

We expect a range today of 0.7490 – 0.7590

Great British Pound

UK Stocks rallied the most in a month as the FTSE 100 Index added 2.9 percent. In what can only be described as a sea of green, last weeks heavy losses have been quickly erased as concerns eased that Europe’s Debt Crisis will curb company profits. With European Leaders meeting overnight to thrash out the framework for its latest rescue package the Sterling advanced against the Greenback reaching an overnight high of 1.5593, before losing some ground to open slightly higher than the same time yesterday at a rate of 1.5495. Looking ahead for the remainder of the week, the local economic calendar appears relatively busy with a handful of announcements likely to fuel some larger than normal currency swings. Meanwhile on the cross-rates this morning the Sterling opens weaker against the Aussie (1.5685) and the Kiwi (2.0559).

We expect a range today of 1.5600 - 1.5800

Majors:

Global Stocks rose for the first time in 11 days, as commodities and a handful of major currencies also enjoyed upwards moves. The driving force behind the rally overnight started in Europe where European Leaders met to outline the framework for the region’s bailout fund with the latest rescue package most likely to insure bonds of debt-stricken countries. Whilst souring bonds-yields have plagued currency markets over the past week, European borrowing costs fell overnight following the announcement, as investor concerns were eased by the latest display of political cohesion. Despite the positive sentiment overnight the EURO opens flat this morning against its US Counterpart at a rate of 1.3306 despite its earlier advance just shy of the 1.34 level. In the US overnight in clears signs that consumer demand is slowly starting to recover Retail Sales over the Thanksgiving holiday climbed to a record 16 percent. Meanwhile this morning continuing its recent trend higher the US Currency Opens stronger against its US Counterpart at a rate of 77.974

Data releases

AUD: No Data Today

NZD: No Data Today

JPY: Household Spending y/y, Unemployment Rate, Retail Sales y/y

GBP: Nationwide HPI m/m, Net Lending to individual’s m/m, M4 Money Supply m/m, Autumn Forecast Statement

EUR: No Data Today

USD: CB Consumer Confidence, OFHEO HPI m/m, FOMC Member Yellen Speaks, FOMC Member Raskin Speaks,