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Australian Dollar:
The Australian Dollar initially held up well against its US Counterpart yesterday trading as high 1.0370 late in the Asian Session. Following the significant gains witnessed late on Friday evening, such levels had not been witnessed for over a month against the Greenback. As the Nation’s currency entered European Trade however the Aussie Dollar was sold across the board as Germany announced that there remains no quick fix to Europe’s debt crisis, sparking a fresh wave of risk-aversion which saw the Aussie Dollar traded as low as 1.0176. Looking ahead today the Australian Dollar opens lower at a rate of 1.0191 with investors watching closely the release of the Reserve Banks Minutes from there Oct 4 Meeting where Governor Glenn Stevens signalled there remains some scope to cut interest rates if necessary
 
New Zealand Dollar:
In what has become a repeating theme of late, it was again news out of Europe which dominated headlines yesterday. Sparking an across the board sell-off yesterday were comments made by Germany’s Finance minister that there will be no definitive or miracle solution to Europe’s debt crisis when EU Ministers next meet in Brussels on October 23. Following a strong rally overnight on Friday the New Zealand Dollar was unable to hold on to its gain, trading to 24-hour low of 0.7917 against its US Counterpart. Meanwhile this morning the Kiwi opens a full cent lower currently buying 79.22 US Cents
 
Great British Pound
The Great British Pound opens noticeably lower this morning currently swapping hands at a rate of 1.5749 against its US Counterpart. After trading between a 24 hour range of (1.5730 – 1.5847), the main trigger for the sell-off came following statements out of Germany that EU Leaders will not be providing a complete fix to the Euro-area’s debt crisis when Policy Makers next meet on Oct 23. With Germany clearly watering down any dream of a quick-fix the movements and developments of the last 2 days further demonstrate the extent to which European Sovereign Debt holds the key to global Risk Sentiment. Looking ahead today investor’s attention will turn to inflationary data which is due for release out of the UK this evening. Meanwhile the Sterling opens a cent higher against a weaker Australian Dollar at a rate of 1.5460

Majors:
The S&P 500 Index fell 1.9 percent yesterday following gains of over 6 percent witnessed last week. As global equities finished well in the green late on Friday, global optimism was somewhat punctuated overnight with German Chancellor Angela Merkel’s chief spokesman Steffen Seibert stating that European Ministers will not be providing any quick solutions to the regions underlying fundamental debt problems when policy makers meet again on Oct 23. Whilst such comments have certainly enhanced the reality that there are no easy solutions, the EURO weakened to an overnight low of 1.3729 as it opens a full cent lower against its US Counterpart this morning at a rate of 1.3745. In unrelated developments overnight US Economic Data again produced some mixed signals with Industrial Production Figures of 0.2 percent matching expectation whilst in another report the Federal Reserve Bank of New York’s general economic Index produced a soft result of minus 8.5.Meanwhile this morning following on from what proved to be another busy session the Greenback opens lower against the Japanese Yen at a rate of 76.828.
 
Data releases
 
AUD: Monetary Policy Minutes   
NZD; No Data Today
JPY: NO Data Today  
GBP: CPI y/y, RPI y/y,   
EUR: German ZEW Economic Sentiment,
USD: PPI m/m, NAHB Housing Market Index, Fed Chairman Bernanke Speak