Daily Forecast - 18/3/2010

:: Australian Dollar: The Australian Dollar opens higher today at 0.9220. In the absence of any local economic data yesterday, traders were content to play the ranges and the currency was quickly sold when it attempted to dip its toe in the water at US92 cents. Stronger gold and commodity prices however kept a solid floor under the unit at 0.9170. During the offshore session the Aussie moved higher towards 0.9250 on the back of a stronger Euro (1.3730) which hit a one-month high against the greenback after reports Greece will maintain its BBB+ credit rating. Meanwhile, the local unit is steady on the cross rates and is trading at 0.6700 against the Euro and 0.6000 against the British Pound.

- We expect a range today in the AUD/USD rate of 0.9190 to 0.9260

:: Great Britain Pound: UK Jobless claims for February fell unexpectedly by 32,400, the fastest pace since 1997, boosting the Pound to 1.5380 against the Greenback. Economists had expected an increase of 6,000. Overnight the Bank of England's March minutes revealed policy makers had voted unanimously when pausing their bond purchasing program for the second month in March amid rising inflation expectations. The suggestion of a UK recovery sees the Pound opening higher at 1.5320 against the US Dollar. Meanwhile, the pound is steady against both the Australian Dollar (1.6600) and the New Zealand Dollar (2.1450).

- We expect a range today in the GBP/AUD rate of 1.6540 to 1.6630

:: New Zealand Dollar: The New Zealand Dollar opens higher today at 0.7140. The kiwi received a boost during Wednesday''s domestic session on the back of stronger commodity prices and a weaker greenback, rallying to a 6-week high of 0.7134. The greenback was weaker across the board after the U.S Federal Reserve pledged once again to keep their key lending rate steady at 0 - 0.25 per cent for an extended period. During offshore trade, the kiwi moved higher briefly nudging 0.7170 as the Euro hit a one-month high on reports Greece will maintain its BBB+ credit rating. Meanwhile, the kiwi is steady against the Australian Dollar and opens today at 0.7730.

- We expect a range today in the NZD/USD rate of 0.7100 to 0.7175

:: Majors: The Japanese Yen suffered in the aftermath of the Bank of Japan's decision to double the size of their liquidity program to 20 trillion Yen for banks with the Greenback reaching an overnight high of 90.70. The Euro had a volatile session falling to 1.3725 against the Greenback amid refreshed concern for the region as Greece remains unresolved. However, reports late in the session that Greece is likely to maintain its BBB+ credit rating triggered a rally to 1.3817 - a one-month high. Today the Euro and Yen open marginally weaker compared to this time yesterday at 1.3740 and 90.23.

:: Data Releases: