Australian Dollar
The Australian Dollar found some tentative ground above parity on Friday following a week in which the Nation’s Currency lost over 2 percent against its US Counterpart. Having traded to an overnight high of 1.0027 the Australian Dollar was well supported by firmer equities throughout Asia.

In the absence of any local data, markets have calmed somewhat over the past 24-48 hours with the main focus still remaining the underlying threat out of Europe and the negative flow on effects to global risk sentiment. With markets set to wind down shortly before the Christmas break any prolonged advancement above the critical parity level appears unlikely. Meanwhile this morning the Australian Dollar opens stronger currently buying 99.66 US Cents

We expect a range today of 0.9910 - 1.0010

New Zealand Dollar
The New Zealand Dollar rose for much of Friday, well supported by equity gains out of Asia and stronger than expected demand for Spanish Government Debt. Following a week in which higher- yielding assets such as the New Zealand Dollar came under some fresh selling pressure the Kiwi recovered well for much of Friday reaching an overnight high of 0.7645 against its US Counterpart having began the day at a rate of 0.7529.

With some larger volumes being noticed throughout Currency Markets over the course of Fridays Session investors are keen to square up positions ahead of the Christmas Break. This morning sees the Kiwi open just shy of a full cent stronger currently swapping hands at a rate of 0.7607.

We expect a range today of 0.7540 – 0.7650

Great British Pound
The Great British Pound tracked higher for much of Friday’s session, trading between a 24-hour range of (1.5482 – 1.5557) against it US Counterpart. In an overall positive session for the Sterling it opens stronger this morning at a rate of 1.5544.

Following the British PM’s rejection of the European Accord last week in further signs that the UK economy is trying to isolate itself from the confines of the EU, in reforms outlined Friday, UK Banks will be forced to separate their investor and consumer businesses with such recommendations being put forward in an effort to boost the amount of loss-absorbing equity.

Meanwhile this morning with markets calming significantly for much of the past 24 hours the Sterling opens weaker against both the Australian Dollar (1.5569) and New Zealand Dollar (2.0387).

We expect a range today of 1.5490 – 1.5630

Majors
In what was a tumultuous week for a handful of major currencies the EURO recovered well on Friday opening this morning 30 basis points higher at a rate of 1.3040. Having lost 2.5 percent against its US Counterpart last week the EURO has managed to find some much needed support around the critical 1.30 level over the past couple of days, with prices below this level not being seen since January this year.

Dominating headlines on Friday evening European Finance Ministers announced that they will seek to meet tonight in order to discuss a self-imposed deadline for drawing additional aid to the debt crisis. With investor confidence wanning considerably, further warnings of credit-rating downgrades to Nations such as France are likely to weigh heavily on the EURO as well as currencies deemed riskier in nature.

Meanwhile in signs that the US recovery is slowly gaining momentum the Philly Manufacturing Index, Unemployment Claims and PPI figures all came in equal to or better than expectation with Industrial Production the only disappointing figure with a reading of negative 0.1 percent coming in below the anticipated reading of 0.3. Having rallied for much of the week the Greenback opens weaker against the Japanese Yen at a rate of 77.704.

Data releases

AUD:
No Data Today

NZD: Westpac Consumer sentiment, NBNZ Business Confidence

JPY:
No Data Today

GBP: Rightmove HPI m/m, BOE Quarterly Bulletin

EUR:
Current Account, Italian Trade Balance

USD: N
AHB Housing Market Index