Not sure which way the dollar is heading? Why not speak to your OzForex dealer about protecting your foreign exchange payments or receipts using our Currency Options solution.

Australian Dollar:
The Australian Dollar gained considerable ground yesterday following three days of consecutive losses. After initially opening at a rate of 1.0483 against its US Counterpart the Nations Currency rallied hard throughout the Asian Session as a Government report released yesterday showed Australian Gross Domestic Product expanded 1.2 percent from the previous quarter, comfortably beating expectation and coming in well above the previous reading of negative 0.9 percent. With such growth figures demonstrating that the Australian Economy is still growing at a pace above the majority of other developed nations the Nations Currency traded to a 24 hour high of 1.0660. Looking ahead today the Australian Economic Docket remains busy with the release of official employment figures as the Australian Dollar opens a full cent a half higher this morning at a rate of 1.0658 

We expect a range today of 1.0580 – 1.0720

New Zealand Dollar:
The New Zealand Dollar advanced against the US Currency yesterday for the first time this week. With demand for riskier assets increasing, commodities gaining ground and Asian Equity markets closing well in positive territory the New Zealand Dollar traded to a 24 hour high of 0.8324 against its US Counterpart. This morning investor’s attention will be focused on Local happenings with Manufacturing Sales data due for release shortly, as the kiwi looks to again consolidate above the psychological 83 US Cents Barrier the New Zealand Dollar opens stronger currently buying 83.18 US Cents.

We expect a range today of 0.8240 – 0.8350

Great British Pound:
UK Stocks advanced yesterday, with the FTSE 100 Index posting its largest gains since May 2010. With Commodities and Banking Stocks leading the way the Sterling was bought by investors trading as high as 1.6040 against its US Counterpart. In local fundamentals released overnight Industrial Production and Manufacturing Figures produced disappointing results painting an increasingly gloomy picture for the UK economy. As the market looks ahead this evening, the Bank of England are scheduled to meet for their monthly interest rate decision with any further signs of stimulus likely to bold well for the Sterling. In what has been a choppy week of trading the Great British didn’t fare as well against the Australian Dollar with a general return to riskier assets seeing it open a full cent lower at a rate of 1.50
 
We expect a range today of 1.4920 – 1.5070
 
Majors:
The S&P 500 jumped 2.9 percent yesterday rebounding well from a four day losing streak. As gold fell overnight the US Dollar also lost considerable ground, snapping a six-day rally. Driving last night’s recovery was speculation that President Barrack Obama will shortly announce an Economic stimulus package in excess of $300 Billion in order to help boost economic growth. In its Beige Book Survey released overnight Fed Reserve Chairman Ben S Bernanke did note that economic activity has continued to expand at a modest pace with some regions even reporting mixed or weakening activity. With markets reacting positively to signs of further stimulus overnight the Greenback weakened against a handful of currencies including the Japanese Yen with the USD/JPY opening lower this morning at a rate of 77.246. Meanwhile in European News, the EURO also rallied overnight trading between a range of (1.3391 – 1.4148) against its Counterpart, opening a full cent higher this morning at rate of 1.4095. Looking ahead the ECB is due to meet this evening with any changes regarding foreseeable interest rate movements likely to have an immediate impact on currency markets.
 
Data releases
 
AUD: Unemployment Rate
NZD; Manufacturing Sales q/q
JPY: Core Machinery Orders m/m, Bank Lending y/y, Currency Account, BOJ Monthly Report
GBP:NIESR GDP Estimate, Official Bank Rate, MPC Rate Statement
EUR: German Trade Balance, French Trade Balance, French Final Non-Farm Payrolls q/q, ECB Press Conference
USD: Trade Balance, Unemployment Claims, Consumer Credit M/M