Daily Forecast - 27/4/2010

:: Australian Dollar: The Australian Dollar moved marginally higher yesterday and gradually worked its way towards 0.9280. Trading volumes were thin at best owing to a national public holiday for ANZAC Day and the local currency was unable to build upon last Friday night's late rally. The Aussie opens on Tuesday at 0.9260 after moving between a low of 0.9240 up to a high of 0.9304 during the offshore session on the back of our higher yield and a rise in commodity prices.

- We expect a range today in the AUD/USD rate of 0.9230 to 0.9295

:: Great Britain Pound: Pound Sterling (1.5440) moved higher overnight after a report revealed U.K. house prices rose for a ninth consecutive month. The pound hit an intraday high of 1.5496. Also aiding the pound overnight was an opinion poll showing the conservative party, who have pledged to reduce the budget deficit, are marginally ahead of the Labour party at 34 per cent. The gains in the pound are likely to be short-lived however. Meanwhile, the pound is higher against the Australian Dollar (1.6670) and weaker against the New Zealand Dollar (2.1366).

- We expect a range today in the GBP/AUD rate of 1.6620 to 1.6700

:: New Zealand Dollar: An ANZAC Day public holiday across the Tasman kept volumes and ranges to a minimum during Monday's domestic session however, the kiwi surged to a three-month high at 0.7254 during offshore trade and opens this morning at 0.7230. Higher yields and commodity prices have helped lift the kiwi out of its recent range between 0.7050 and 0.7200. On Thursday, the Reserve Bank of New Zealand announces the Official Cash Rate.?Rates are widely tipped to remain on hold at 2.5 per cent. Meanwhile, the kiwi has picked up ground against the Australian Dollar and opens today at 0.7785.

- We expect a range today in the NZD/USD rate of 0.7180 to 0.7275

:: Majors: The Euro (1.3370) spent most of the last session on the back foot as the Greek bailout package encounters some final hurdles. In overnight trade, the Euro nudged a one-year low against the greenback at 1.3290. Germany's chancellor Angela Merkel said aid funds for Greece will not be released until Athens has a sustainable plan and agrees to tough austerity measures to reduce debt over the next several years. Meanwhile, the greenback has held onto its recent gains on the Japanese Yen opening today at 93.97. The 24-hour range was a fairly subdued 93.92 - 94.34.

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