New Zealand Dollar:
The New Zealand Dollar drifted lower yesterday amid renewed concerns that the European Sovereign debt crisis is worsening. With commodities and global equities also falling the Kiwi reached an overnight low of 0.8291 against its US Counterpart. In local developments yesterday New Zealand’s Treasury announced that weaker than anticipated Global Growth may way weigh on exports and commodities, dampening demand for the higher-yielding currency. With the Rugby World Cup likely to provide only minimum economic activity, global growth concerns are likely to put pressure on the Nations Currency in the Short-term and despite a US Public Holiday overnight limiting volumes the New Zealand Dollar opens a full cent lower against the Greenback at a rate of 0.8319

We expect a range today of 0.8270 -.8370

Australian Dollar:
Asian Stocks fell for a second day yesterday after a US Jobs Report released overnight Friday triggered a negative flow-on effect to local Equity Markets. With Oil losing Ground and the US Dollar Index heading for continued winning streak the Australian Dollar was sold throughout the intra-day session reaching an eventual low of 1.0511 against its US Counterpart. In data released locally yesterday The Australian Services Index rose 3.3 percent to 52.1 for the month of August, well above the previous reading of 48.8. With the US enjoying a Labour Day Public Holiday overnight movements were limited as we the Aussie opens lower again this morning at a rate of 1.0548. Looking ahead all eyes will be on the RBA at 11:30am today, where the official cash rate is widely tipped to remain unchanged at a rate of 4.75 percent with any signs pointing towards a potential drop in rates moving forward likely to trigger a slight sell-off in the Nations Currency

We expect a range today of 1.0470 – 1.0620

Great British Pound:
UK Stocks lost considerable ground overnight with the FTSE losing 3.6 percent. With news surfacing that some of the Nation’s largest Lenders in particular RBS and Barclays were sued by the US over the sale of mortgage back securities, the large losses by the Banks only compounded the Woes for the Great British Pound.  Given the fall in Global Sentiment and renewed Concerns over Europe’s Sovereign Debt levels the Sterling was sold to an overnight low of 1.6060 against its US Counterpart, opening this morning around 40 basis points lower a rate of 1.6117. Looking ahead this evening volatilities are likely to remain with US Workers returning from a long weekend and Production Figures due for release in the UK. Meanwhile this morning the Sterling opens stronger against a weaker Australian Dollar at a rate of 1.5269
 
We expect a range today of 1.9310 – 1.9410
 
Majors:
Global Stocks Fell, Gold Gained while the US Dollar Strengthened yesterday in what proved to be another volatile session across financial markets. Despite US Markets remaining closed due to the Labour Day Public Holiday the major mover overnight was the EURO, which slumped to its lowest level seen since August 5^th compounding five days of consecutive losses against the Greenback, the longest losing streak since January. With the EURO Falling to an overnight low of 1.4097, Sovereign Risk-Related Events are likely remain the major market driver, providing the overall tone for global sentiment. In Major news effecting both European and US Investors overnight, headlines surfaced that the US Government has filed 17 lawsuits against banks to try and recuperate the estimated 196 Billion which was spent on mortgage backed securities. While European banks remain better capitalized than in 2008 such announcements only provide further reputational damage as well as increasing the insurance costs against in potential defaults. Meanwhile this morning the Greenback opens stronger against a handful of its major trading partners with the exception of the Japanese Yen which is currently trading at a rate of 76.850
 
 Data releases
 
AUD: Home Loans m/m, Current Account, RBA Rate Statement, Cash Rate Decision
NZD: No Data Today
JPY: No Data Today
GBP: Halifax HPIC m/m, BRC Shop Price Index y/y
EUR: Revised GDP q/q, German Factory Orders m/m
USD: ISM Non-Manufacturing PMI