:: Australian Dollar: The Australian Dollar opens higher against the greenback today at 0.9285. Stronger than expected local housing finance data during the local session yesterday gave the currency a boost to an intraday high of 0.9241. Home loans grew by 5.1 per cent in September to 65,505 after 2 months of slowing demand in yet another signal to markets that the Reserve Bank of Australia (RBA) may need to hike rates in the coming months. The RBA is known to be concerned about unimpeded price-growth in the residential housing sector. During offshore action, the Aussie nudged US93 cents on the back of continued greenback weakness and another surge in commodity prices. Gold hit fresh record highs overnight above US$1,100/oz.

- We expect a range today in the AUD/USD rate of 0.9220 to 0.9360

:: Great Britain Pound: Pound Sterling opens higher against a weakening greenback at 1.6754 after the Group of 20 nations agreed to maintain economic stimulus measures, encouraging investors to buy higher yielding assets. The pound hit a 3-month high of 1.6842 overnight on the back of stronger commodity prices and another solid rise in equities. London's FTSE 100 index climbed 1.8 per cent on Monday to 5,235. Meanwhile, the pound is steady against the Australian Dollar at 1.8000 and lower against the New Zealand Dollar at 2.2550.

- We expect a range today in the GBP/AUD rate of 1.7800 to 1.8160

:: New Zealand Dollar: The New Zealand opens above US74 cents and climbed from the word 'go' yesterday after the dairy industry giant Fonterra Cooperative Group Ltd announced a 20 per cent increase in payouts to farmers. The kiwi hit an intraday high of 0.7360 soon after the announcement. During overnight trade, the kiwi moved between a low of 0.7360 and a high of 0.7420. The local unit continues to be underpinned by strong commodity prices and a favourable interest rate differential with the U.S., UK and Japan. Meanwhile, on the cross rates, the kiwi is steady against the Australian Dollar at 0.7960.

- We expect a range today in the NZD/USD rate of 0.7340 to 0.7480

:: Majors: The greenback weakened overnight against several major currencies after the Group of 20 nations agreed to maintain economic stimulus measures, encouraging investors to buy higher yielding assets. The Euro (1.4990) strengthened after German exports rose 3.8 per cent in September, well above market expectations. Overnight, the Euro touched a 2-week high of 1.5019 and may appreciate further in the weeks ahead as the United States is expected to keep interest rates at their current low levels. Meanwhile, the big dollar is little-changed against the Japanese Yen and opens today at 89.90.

:: Data Releases:

  • AUD: NAB Business confidence, Sep
  • CAD: No data today
  • EUR: German CPI, Oct; ZEW Survey of economic conditions, Nov
  • GBP: Trade Balance, Sep; RICS House prices, Oct
  • JPY: Trade Balance, Sep
  • NZD: Card Spending, Oct
  • USD: No data today

:: Note: The above exchange rates are based on interbank rates. If you are considering a transfer then please login, register or call us for a live dealing rate.

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