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Australian Dollar:
The Australian Dollar fell against all of its 16 major counter-parties after a government report released yesterday showed the Official Unemployment Rate unexpectedly rose to 5.3 percent. With Australian employers cutting workers for the second consecutive month the total number of employed fell by 9700 workers against an expected rise of 10 000. Off the back of such a weak result the Australian Dollar was immediately sold trading to an intra-day low of 1.0568 late in the Asian Session. As the Nation’s Currency seesawed overnight initially recovering all of the day’s losses, such moves were shortly lived as the Australian Dollar opens lower this morning at a rate of 1.0576 in what has been a rollercoaster ride in the last 24 hours.

We expect a range today of 1.0510 – 1.0630

New Zealand Dollar:
Following on from what proved to be a relatively slow start to the day for the New Zealand Dollar the Kiwi tracked sidelines for the majority of the day trading within a tight 20 basis point range. In overnight trade the kiwi traded to an eventual high of 0.8381 against its US Counterpart, before Federal Reserve Chairman Ben S. Bernanke disappointed markets by not detailing any news plans to boost growth in the world’s largest economy, when he addressed a group of economists in the US overnight. Off the back of such a lacklustre speeches global equity were immediately sold as was the New Zealand which opens this morning almost completely unchanged from the same time yesterday at a rate of 0.8305.

We expect a range today of 0.8260 – 0.8370

Great British Pound:
The Great British Pound opens lower this morning at a rate of 1.5956 against its US Counterpart after earlier rising as high as 1.6082. As was widely tipped the Bank of England keep borrowing costs on hold overnight as the benchmark cash rate remained unchanged at 0.5 percent. Off the back of such news the Sterling initially rallied as the nine-member Monetary Policy Committee also held bond purchases on hold at 200 billion pounds. Despite such news providing brief support for the Sterling mixed leads out of the US and Europe again provided little support for the Nations Currency. Looking ahead volatilities are likely to remain with US President Barrack Obama due to address congress shortly to discuss a further $300 Billion in Stimulus. Meanwhile the Great British Pound opens stronger against a weaker Australian Currency at a rate of 1.5082.

We expect a range today of 1.5020 – 1.5140
 
Majors:
Global Stocks declined, commodities fell and the US Dollar gained ground yesterday with Key Interest Rate Talks dominating headlines. In the US overnight Federal Reserve Chairman Ben S. Bernanke disappointed markets in a speech to economists which failed to detail any new plans to boost economic growth in an already stagnant climate. Triggering losses on equity markets was Bernanke’s inability to provide anything new to investors, as the Federal Reserve Policy Options remain relatively directionless in the near-term. Meanwhile in Europe overnight as expected the European Central Bank left its official benchmark rate unchanged at 1.5 percent. ECB President Jean-Claude Trichet went further to voice concerns that downside risks to the Euro Zone remain intensified, allowing officials the option to take further action should the debt crisis worsen. In what proved to be a busy evening of economic announcements the EURO weakened against 15 of its 16 major counterparties losing over a cent and half against its US Counterpart, trading as low as 1.3872, as it opens this morning testing some fresh downside at a rate of 1.3884. In other currency news the Greenback rallied again overnight, benefitting from some minor risk aversion at its opens stronger against the Japanese Yen at a rate of 77.500.
 
Data releases
 
AUD: No Data Today
NZD; REINZ HPI m/m
JPY: Final GDP q/q, Final GDP Price Index q/q, M2 Money Stock y/y
GBP: PPI Input m/m, PPI Output m/m, CB Leading Index m/m
EUR: German Final CPI m/m, German WPI m/m, French Industrial Production, French Gov Budget Balance
USD: Wholesale Inventories m/m