:: Australian Dollar: The Australian Dollar opens sharply higher today at 0.8490. During local trade on Thursday, the Aussie rallied above US83.50 cents after stronger-than-expected jobs data which provided further evidence of strength in the domestic economy. The unemployment rate fell to 5.2 per cent for the month of May with a net 26,900 positions added. The gains continued offshore as commodity prices rallied on confirmation from Chinese officials that their exports rose in April by 50 per cent compared to a year earlier. During the offshore session, the unit traded between 0.8380 up to a high of 0.8498. Meanwhile, on the cross rates, the Aussie remains strong against the Euro (0.6980).

- We expect a range today in the AUD/USD rate of 0.8440 to 0.8525

:: Great Britain Pound: Pound Sterling (1.4710) opens higher today after the Bank of England left interest rates on hold at a record low of 0.5 per cent whilst maintaining its bond-buying program. A rally in commodities and global equity markets boosted the Euro and in turn risk sentiment, helping the pound reach its highest level this week (1.4716). Keeping a lid on the pound near-term however are concerns over the U.K’s budget deficit. Meanwhile, the pound is lower against both the Australian Dollar (1.7300) and the New Zealand Dollar (2.1430).

- We expect a range today in the GBP/AUD rate of 1.7220 to 1.7350

:: New Zealand Dollar: The New Zealand Dollar opens sharply higher today at 0.6860 after the Reserve Bank of New Zealand raised the Official Cash Rate (OCR) by 25 basis points to 2.75 per cent. The unit rallied on the release of the news and also followed the Australian Dollar higher throughout the local session hitting a high of 0.6780. The rally continued overnight as the Euro strengthened along with global equities and commodities, boosting risk sentiment. Overnight the currency traded between 0.6775 and a high of 0.6875. The kiwi is steady against the Australian Dollar at 0.8070.

- We expect a range today in the NZD/USD rate of 0.6820 to 0.6900

:: Majors: The Euro opens higher today against the greenback at 1.2100 and has moved off the canvas on speculation that Europe’s debt crisis is unlikely to derail growth. The rally is risk currencies overnight was aided by Germany’s Constitutional Court decision removing a roadblock in Germany’s participation in the Euro Zone debt bailout. Over the last 24 hours, the Euro traded between 1.1956 and a high of 1.2141 as the European Central Bank held its key interest rate on hold at 1 per cent and said that “temporary” bond purchases would continue. Meanwhile, the big dollar opens steady against the Japanese Yen (91.30) after the U.S. trade gap widened in April to the highest level in 18 months (US$40.3bio) as exports and imports both declined.

:: Data Releases: AUD: No data today CAD: No data today EUR: No data today GBP: PPI Output, May JPY: No data today NZD: No data today USD: Retail Sales, May; Consumer confidence, June; Business Inventories, April

United kingdom