Daily Forecast - 16/4/2010

:: Australian Dollar: The Australian Dollar opens steady on Friday at 0.9340 and was underpinned throughout yesterday's domestic session by stronger commodity prices and a solid start on local equities. The unit hit an intraday high of 0.9363 in what was ultimately another failed attempt to get through resistance at the 5-month high of 0.9385 reached earlier in the week. Strong first quarter Chinese growth data (11.9 per cent) announced at 12-noon Sydney time was largely expected and had no impact on the currency. Early in the European session, the Aussie hit an overnight low of 0.9310. Meanwhile, the local currency is stronger against the Euro (0.6870), the Pound (0.6020) and the New Zealand Dollar (1.3110).

- We expect a range today in the AUD/USD rate of 0.9320 to 0.9385

:: Great Britain Pound: Pound Sterling moved higher overnight and opens against the greenback on Friday at 1.5485. Sterling hit an overnight high of 1.5523 after an opinion poll showed the Conservative Party has extended its lead over the Labour Party, easing concerns of a hung parliament at next month's election. Any hint of political instability generally has a negative effect on that nation's currency. Meanwhile, the pound is higher against both the Australian Dollar (1.6570) and the New Zealand Dollar (2.1750).

- We expect a range today in the GBP/AUD rate of 1.6480 to 1.6595

:: New Zealand Dollar: The New Zealand Dollar opens lower on Friday at 0.7115. During yesterdays local session, the kiwi hit an intraday high of 0.7160 after the BNZs Performance of Manufacturing Index (PMI) for March came in at a two-and-a-half year high at 56.3. A reading above 50 indicates that manufacturing is expanding. However, the gains were short-lived and the currency traded as low as 0.7115 early in the European session. The kiwi has lost ground against the Australian Dollar and is trading at 0.7610.

- We expect a range today in the NZD/USD rate of 0.7100 to 0.7155

:: Majors: The Euro opens lower today at 1.3570 compared to 1.3650 this time yesterday as markets wait for the parliaments of Germany, France & Ireland to vote on whether to contribute their share of the EU loans for the Greek bailout package. Until the bailout package is set in stone, any Euro gains are expected to be limited. Meanwhile, the greenback opens lower against the Japanese Yen at 93.00 after mixed economic data overnight. U.S. factory production climbed 0.9 per cent in March after a 0.2 per cent rise in February. However, the number of Americans filing for jobless benefits unexpectedly rose by 24,000 to 484,000 in the week ending April 10 - the highest level in 2 months.

:: Data Releases: