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Australian Dollar:
The Australian Dollar opens stronger against its US Counterpart this morning at a rate of 0.9838 in what proved to be another roller-coaster ride for the Nations Currency. Trading between a wide 24hour range of (0.9621 – 0.9836), the Aussie was initially  sold off throughout the domestic session as Asian Equities lost ground and general risk aversion set in. Entering the US and European Session however the days earlier losses were quickly erased amid speculation that European Policy Makers will take further steps to ensure the regions debt situation does not worsen. Looking ahead today in the absence of any local data, short-term direction is again likely to be dominated by global risk sentiment and any further happenings out of the wider European Zone.
 
New Zealand Dollar:
The New Zealand Dollar stabilised in early morning trade yesterday, with markets calming substantially from the wave of selling witnessed around the globe last week. In local Data Released the New Zealand Trade Balance for the month of August unexpectedly widened yesterday, with the overall deficit rising to $641 Million. While such results weren’t all bad news with the level of exports increasing by $313 Million, the Kiwi’s early resilience was broken down as the Nation’s Currency entered the offshore session, reaching a fresh 5-month low of 0.7636 against its US Counterpart. This morning however sees the Kiwi open surprisingly higher at a rate of 0.7807 as optimism that Europe will act to prevent the regions debt-crisis spurring demand for the higher yielding currency.

Great British Pound
The Great British Pound opens a full cent higher against its US Counterpart this morning currently trading at a rate of 1.5573. With UK Stocks rebounding for the second consecutive day following last week’s heavy losses, it was again speculation out of the broader European Zone which determined the market’s direction.  Following a slow start to the day the Sterling initially traded as low as 1.5431 before hearing of reassurances that European Policy Makers will do whatever necessary to ease funding strains. Meanwhile this morning the Sterling opens higher against both the Australian Dollar (1.5808) and the New Zealand Dollar (1.9937).

Majors:
Stocks Rallied, Commodities gained whilst the US Dollar lost ground yesterday as European officials discussed plans to tame the regions debt crisis. With The Standard & Poor’s 500 Index rallying 2.3 percent yesterday, Global Equities returned positive results for a second consecutive day, following last week’s substantial drop of 6.4 percent. Spurring optimism overnight, the market heard of further re-assurances that Policy Makers will do anything and everything to ensure Liquidity across the regions struggling financial markets. Also out of Europe overnight was news that the ECB are likely to restart the debate as to how best ease monetary conditions in the coming week, either through a potential interest cut or re-visiting a policy of covered-bond purchases. Regardless of the underlying the credentials of either policy the market liked what it heard as the EURO opens slightly higher against the Greenback this morning at a rate of 1.3538. Meanwhile in the US overnight the Greenback lost ground against the Japanese Yen as investors sold down assets deemed to be safer, this morning sees the US Currency open lower at a rate of 76.307.
 
Data releases
 
AUD: No Data Today
NZD; No Data Today
JPY: CSPI y/y
GBP: Nationwide HPI m/m, MPC Member Posen Speaks, CBI Realised Sales
EUR: GfK German Consumer Climate, M3 Money Supply y/y, Private Loans y/y
USD: S&P/CS Composite -20 HPI y/y, CB Consumer Confidence, Richmond Manufacturing Index