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: Continued investor optimism about Europe finding a solution to its debt problems provided support for the Aussie yesterday. Rallies in the currency towards parity were being sold into and the unit was supported at 0.9950. In overnight trade the unit hit a high of 0.9995. In economic news, confidence in the Australian business sector strengthened last month despite a marked increase in global volatility. The NAB’s index of business confidence rose to minus 2 from a two-year low in August. The Aussie opens at 0.9960 against the greenback this morning ahead of consumer confidence data at 11:30am AEST.
 
New Zealand Dollar:  The kiwi opens at 0.7800 against the US Dollar today and has managed to hold onto most of its recent gains as optimism continues in response to statements by Germany and France that plans to resolve Europe’s debt crisis will be available in three weeks. During Tuesday’s domestic session, the currency traded between a low of 0.7810 and a high of 0.7845. In the absence of any major local economic data, the kiwi is reacting to events offshore and investor sentiment on the region’s equity markets. Moves overnight mirrored those in the Euro which saw the kiwi edge lower to 0.7760 ahead of this morning’s open. Meanwhile, against the Australian Dollar, the kiwi is softer at 0.7820.
 
Great Britain Pound: The pound has failed to hang onto its recent gains and opens at 1.5570 against the greenback. Mixed economic data continues to keep a lid on Sterling which retreated from an overnight high of 1.5668 after factory output fell 0.3 per cent in August. The contraction in UK manufacturing was more than analysts had forecast and adds to signs the economy continues to struggle. Meanwhile, the pound also opens lower against both the Australian Dollar (1.5600) and the New Zealand Dollar (1.9920).
 
Majors: The relief rally in the Euro stalled overnight as the market awaits Slovakia’s decision on the revamped European Financial Stability Facility. Whilst there is no date set for a repeat vote, Slovakia remains the only nation of the 17-member euro-area that is yet to ratify the measure, following Malta’s approval on Monday. In overnight trade, the euro retreated from a high of 1.3683 down to 1.3564. As the Euro-area teeters on the edge of recession, EU and IMF officials indicated on Tuesday that Greece will get an 8-billion euro loan next month under a 110-billion euro bailout. Meanwhile, the greenback opens little-changed against the Japanese Yen at 76.60.
 
Data releases
 
AUD: Westpac Consumer Confidence; Home Loans, Oct
NZD: No data today
JPY:  Machine orders, August
GBP: Jobless Claims, August
EUR:  France CPI, Sept; Euro Zone Industrial Production, August
USD:  No data today