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Australian Dollar:
In a survey released by Westpac and the Melbourne Institute yesterday, Consumer Confidence edged up further for the month of October, recording a rise in sentiment of 0.4 percent. Whilst the Survey showed a balanced outlook there does remain some underlying caution as global markets continue to show signs of extreme volatility. Despite falling to an intraday low of 0.9865 against its US Counterpart, Strong gains on Global Equity Markets as well as renewed hope that European Leaders are finally taking steps in the right direction saw the Australian Dollar rally hard throughout offshore trade reaching a staggering high of 1.0205.  Looking ahead this morning the Aussie opens two cents higher at a rate of 1.0160 and with Unemployment Figures due for release at 1130 am, a further advance remains a distinct possibility should the official Unemployment Rate drop below its current level of 5.3 percent
 
New Zealand Dollar:
New Zealand home prices increased in September to their highest level since November 2009 according to an Index by the Real Estate Institute. In addition to the strong housing data released yesterday, gains in commodities, global equities and a strong rally in all assets deemed to be riskier in nature spurred the Kiwi to a 24 hour high against its US Counterpart of 0.7995. With renewed optimism that European Leaders are finally doing enough to contain the regions debt crisis, positive sentiment resulted as there appears to a wider spread view that the previously re-active stance of Policy Makers will not be enough to ensure the stability of broader financial markets. Meanwhile this morning the New Zealand Dollar opens a cent and half higher against the Greenback currently trading at a rate of 0.7957

Great British Pound
UK Stocks climbed to their highest level in more than two months yesterday as the FTSE 100 Index gained 0.9 percent. In Comments made by European Commission President Jose Barosso, he stated that piecemeal and re-active responses to the Regions Debts Woes are no-longer sufficient. With investors liking what they heard positive sentiment resulted across the board. Following the good news feed out of Europe the Great British Pound was snapped up by investors reaching an eventual high of 1.5797 against its US Counterpart, opening this morning a full two cents higher at rate of 1.5752. Meanwhile on the cross rates this morning the Sterling struggled to keep pace with a bullish Australian Dollar opening lower at a rate of 1.5500

Majors:
The S&P 500 gained a further 1.7 percent yesterday, recording its biggest gain in seven sessions since March 2009, rebounding a full 10 percent since October this year. Driving global equity markets higher yesterday European Commission President Jose Barroso called for support for crisis hit-bank, a quicker start for a permanent rescue fund to be established as well as calling for the sixth loan to Greece to be verified. Driving positive sentiment throughout markets overnight such comments were well received by investors, as it appears at least for now that Policy Makers are taking steps in the right direction. In addition to Barroso’s comments, Lawmakers in Slovakia finally came to the party and became the last nation to vote on an enhanced European Bailout Fund, essentially approving the Mechanism. In Currency Markets overnight the EURO Traded between a 24 hour range of (1.3582 – 1.3833) against its US Counterpart, opening a full cent and a half higher this morning at a rate of 1.3791. Meanwhile this morning the US Dollar opens slightly weaker against the Japanese Yen at a rate of 77.272 as investors moved away from the Safe-haven Asset.
 
Data releases
 
AUD: MI Inflation Expectations, Employment Change, Unemployment Rate  
NZD; Business NZ Manufacturing Index, FPI m/m
JPY: Monetary Policy Meeting Minutes, Tertiary Industry Activity M/M, Bank Lending
GBP: Trade Balance  
EUR: German Final CPI, ECB Monthly Bulletin
USD: Trade Balance, Unemployment Claims, Federal Budget Balance