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Australian Dollar:
The Australian Dollar made considerable headway against its US Counterpart throughout local trade yesterday, passing through the 1.03 level for the third time in a week, reaching an eventual high of 1.0352 late in Asian trade. Helping support the Nations currency yesterday a leading Index of future economic growth advanced 0.8 percent in August with local equities also advancing 0.6 percent for the day. As the Australian Dollar entered the offshore session however the mood was dampened somewhat with another bout of risk-aversion triggered by rumours that France and Germany remain split as to how best boost the European bailout fund. With signs of ongoing divisions in Europe the Australian Dollar was sold off to reach an eventual low of 1.0204 as it opens lower this morning at a rate of 1.0218.

New Zealand Dollar:
Following a relatively flat start to the day in which the New Zealand Dollar slowly made its way to a late session high of 0.8006 against its US Counterpart, the Nation’s Currency lost significant ground overnight as it opens lower this morning currently buying 79.11 US Cents. With optimism waning and global stocks falling overnight, the market sits tight ahead of the highly anticipated European Union  Summit which is due to kick-off this coming weekend. As Policy Makers continuing to jostle for position ahead of the Summit any advances above the 80 US Cents level appear unlikely in the Short-Term. 

Great British Pound
In minutes released from the Bank of England’s October meeting overnight, the release showed officials voted unanimously to expand the size of their asset-purchase program as the woes of its European Neighbours continue to pose considerable downside risk for the UK economy, creating a compelling case to add stimulus. Despite an overnight session in which US and European Markets finished in the red the Great British Pound appreciated against its US Counterpart, reaching an eventual high of 1.5847 as it opens around half a cent higher this morning at a rate of 1.5769. Looking ahead today the Sterling is likely to remain volatile with domestic Retail Sales expected for release this evening and Consumer Confidence figures due tomorrow.

Majors:
Global Stocks lost ground, commodities fell, and optimism wanned throughout global markets overnight. Triggering an across the board sell-off, news surfaced that France and Germany remain split over the role of the European Central Bank  in leveraging the rescue fund, with banks lobbying against forced recapitalization and larger write-downs on Greek Debt. Whilst time appears to be running out for Europe, powers brokers continue to work frantically towards ending divisions before this weekend’s highly anticipated meeting. In currency markets yesterday the EURO was immediately sold as news surfaced of European in-fighting, falling from a 24-hour high of 1.3868 against its US Counterpart to reach an eventual low of 1.3724. This morning sees the 17-Nation currency open relatively unchanged at a rate of 1.3750 with uncertainty guaranteed in the coming days. Making headlines in the US overnight the Federal Reserve said in its Beige Book survey released in Washington that overall economic activity continued to expand in September, albeit at a “modest” and “slight” pace in certain regions. Whilst recent economic reports have surprised on the upside out of the US of late, the influence on the Greenback has been minimum as it opens slightly lower against the Japanese Yen this morning at a rate of 76.783.
 
  
Data releases
 
AUDNAB Quarterly Business Confidence
NZD; No Data Today
JPY: All Industry Activity   
GBP: Retail Sales m/m
EUR:German PPI m/m, Consumer Confidence  
USD: Unemployment Claims, Existing Home Sales, Philly Fed Manufacturing Index, CB Leading Index m/,