Australian Dollar:

Australian employers added 10 100 workers for a second month in October as the official unemployment rate dropped from 5.3 percent down to 5.2 percent. Despite the global market turmoil which has been witnessed in recent months, these solid figures do demonstrate a relatively resilient labour market. Combined with positive news flows out the Euro-Zone last night, risk sentiment improved from Wednesdays session seeing the Australian Dollar purchased to reach an overnight high of 1.0208 against its US Counterpart up from its earlier low of 1.0051. In what has been another eventful week for currency markets the Australian Dollar opens at a very similar level to where we saw it yesterday currently trading at a rate of 1.0138.

We expect a range today of 1.0080 – 1.0220

New Zealand Dollar:

Financial Markets appeared more composed overnight with Global Equities reversing some of their heavy losses from Wednesday as Italian Bond Yields decreased from their previous historic highs. In local data released yesterday New Zealand’s Performance of Manufacturing Index fell to 46.5 from a revised 50.5 in September which didn’t help the cause of the Kiwi which tracked lower for the majority of the session reaching an eventual low of 0.7731 against its US Counterpart. Meanwhile this morning despite the relatively tight trading range of the kiwi over the past 24 hours, further upside remains unlikely given the ongoing question mark over Europe as the Nation’s Currency opens lower this morning currently buying 77.68 US Cents.

We expect a range today of 0.7720 – 0.7810

Great British Pound:

As expected the Bank of England kept the official cash rate unchanged yesterday at 0.5 percent with the nine members of the Monetary Policy Committee also maintaining its ceiling for quantitative easing at 275 billion pounds. With Financial markets calming significantly from the turmoil of Wednesday, fears of contagion to Italy were temporarily side-lined overnight with Italian borrowing costs falling from their historical highs witnessed a session earlier. In currency movements the Sterling traded between a 24 hour range of (1.5668 – 1.5984) against its US Counterpart as it opens relatively unchanged this morning at a rate of 1.5912. Meanwhile on the cross-rates the Sterling opens stronger also against the Australian Dollar at a rate of 1.5699

We expect a range today of 1.5620 – 1.5810

Majors:

Stocks rose, commodities rallied as the S&P 5800 Index rebounded from its worst drop since August. Kick starting proceedings in Europe Italian Bond Yield retreated yesterday as the market also received confirmation that Greece had elected a new interim Leader, former ECB Vice President Lucas Papademos. Following the positive news, the EURO immediately rallied to an eventual high of 1.3652 against its US Counterpart before settling somewhat this morning to open around 50 basis points higher at a rate of 1.3587. Adding further to the positive sentiment overnight US Jobless Claims decreased to their lowest level in seven months with the US Trade Deficit unexpectedly narrowing in September to its lowest level in a year. In a speech made overnight US Fed Reserve Chairman Ben S Bernanke said that the Central Bank is concentrating “intently” on reducing unemployment as the Labour Market remains increasingly lagged in its response to stimulus. In what was an all round positive session for global markets, the Dollar Index, which tracks the US Currency against those of six trading partners fell 0.5 percent, as the US Currency also lost ground against the Japanese Yen, opening weaker this morning at a rate of 77.631.

Data releases

AUD: No Data Today

NZD: RINZ HPI m/m, FPI m/m,

JPY: Tertiary Industry Activity m/m, CGPI y/y

GBP: CB Leading Index, Asset Purchase Facility, Official Bank Rate

EUR: French Bank Holiday

USD: Prelim UoM Consumer Sentiment, Prelim UoM Inflation Expecatations