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Australian Dollar: The Aussie opens sharply higher today at 0.9950 on the back of news France and Germany have pledged to unveil a comprehensive plan to solve the Euro zone’s debt crisis. The greenback weakened across the board overnight. Despite weaker-than-expected job ads in September, the Aussie rallied throughout much of the Asian session yesterday hitting an intraday high of 0.9840. Investor and exporter interest is seeing the AUD bought at levels in the low 9700s even as economic data points towards a cut in official interest rates sooner rather than later. The latest job ads survey as measured by the ANZ Bank slumped 2.1 per cent last month following a small fall in August. Official unemployment data is scheduled for release this Thursday with the market expecting the rate to remain stuck at 5.3 per cent.
 
We expect a range today of 0.9940 to1.0050
 
New Zealand Dollar: The kiwi moved higher throughout much of Monday’s Asian session buoyed by news France and Germany pledged to unveil a comprehensive plan to solve the Euro zone’s debt crisis. The kiwi hit an intraday high of 0.7760, falling short of last Friday night’s one-week high of 0.7796. In the absence of any major local data this week, the currency will take its cue from offshore events, in particular developments in Europe. In overnight trade, the kiwi rallied to fresh two-week highs above 0.7850 as the greenback weakened across the board as investors took on more risk in light of the above-mentioned pledge by German Chancellor Angela Merkel and French President Nicolas Sarkozy who have given themselves three weeks to devise a plan to recapitalise banks and find a “durable” solution to Greece’s debt woes.
 
We expect a range today of 0.7790 to 0.7890
 
Great Britain Pound: The pound weakened against the Euro (0.8700) overnight and strengthened only marginally against the greenback (1.5650) after an index of consumer sentiment regarding hiring prospects fell in September to its lowest level (minus 67) since February. Economic data in the UK has been mixed lately and yesterday’s release further underlines the fragility of the economy. Last week, The Bank of England boosted its asset-purchase program by 75 million pounds in a bid to revive the ailing economy. Meanwhile, the pound opens weaker against both the Australian Dollar (1.5720) and the New Zealand Dollar (2.0020).
 
We expect a range today of 1.5640 to 1.5760
 
Majors: The Euro (1.3640) rallied sharply against its US counterpart overnight after France and Germany pledged to deliver a plan to support the region’s banks. German Chancellor Angela Merkel and French President Nicolas Sarkozy said in Berlin late on the weekend they have set themselves three weeks to devise a plan to recapitalise banks and find a “durable” solution for Greece’s debt situation. The greenback weakened against several of its major rivals as investors took on board risk and commodity currencies rallied as prices for raw materials moved higher overnight. The 17-nation currency rallied over 2 per cent last night hitting a 12-day high of 1.3697. Meanwhile, the Japanese Yen is little-changed at 76.60 per US Dollar.
 
Data releases
 
AUD: NAB Business Confidence, Sept
NZD: NZ card spending, Sept
JPY: Trade Balance, August
GBP: Industrial & Manufacturing Production, August
EUR: No data today
USD: FOMC minutes, Sept