Australian Dollar: The Australian Dollar opens higher this morning and is exchanging at 0.8678. In the offshore session to dollar moved between 0.8580 and 0.8680 as risk appetite returned to the markets. News out of the US was fairly diverse with both the weekly Jobless Claims and Philadelphia Fed Manufacturing numbers both missing the mark. The labour market continues to be one area in the US that is continuing to struggle with most other sectors looking relatively “healthy”. The Australian Dollar will be at the mercy of offshore events today as there is no local data slated for release. Support for the local unit continues to be at 0.8550 cents with 0.8720 appearing to be first level resistance on the topside.

- We expect a range today in the AUD/USD rate of 0.8580 to 0.8720

:: Great Britain Pound: The Pound is up against the Greenback today as a stronger than expect reading in Retails Sales last night directed trade. Retail Sales for the month of May came in at 0.6% compared with a previous reading 0.1% as consumers put their hands back in their pockets, however many economists expect this figure to turn dramatically later in the year as Prime Minister David Cameron’s government starts to introduce the deepest budget cuts in a generation. Adding to CABLE’s movement last night were comments from the Bank of England’s Governor Mervyn King’s in which he stated that officials will probably raise interest rates before selling bonds or start an orderly exit from the current stimulus programme. Against its Southern Hemisphere rivals the Pound is trading at 1.7068 against the Australian Dollar and 2.10 against the New Zealand Dollar.

- We expect a range today in the GBP/AUD rate of 1.6950 to 1.7150

:: New Zealand Dollar: Despite a 4 points fall in the ANZ- Roy Morgan Consumer Confidence for June the New Zealand Dollar managed to hold above the 0.6950 cents levels for the majority of Asian trade yesterday. In offshore trade the Kiwi managed to break through and hold above the 0.70 cents level, the first time in almost a month as risk appetite returned and mixed US data was released. During the overnight the session the dollar touched a low of 0.6953 and a high of 0.7060. The NZ Dollar is up against the AUD and is currently trading at 1.2305.

- We expect a range today in the NZD/USD rate of 0.6950 to 0.7050

:: Majors: The Greenback opens softer across the board today as data out of the States came in softer than forecast. Both the Weekly Jobless Claims and Philadelphia Fed Manufacturing came in worse than expected and prompted the EURO to rally (overnight range was 1.2240 to 1.2413). Adding to the EURO’s strength overnight was a strong uptake in the sale of Spanish bonds and this eased concern in the markets about the regions debt. The market is still to be convinced that all is well in Europe and some believe the current policy efforts in place are going in the right direction but it needs greater unity amongst members. Against the JPY the Big dollar weaker and currently trading at 90.89. The release today of the minutes from the Bank of Japan previous meeting will provide some volatility in the lead to the weekend.

:: Data Releases: AUD: No data slated for release CAD: Bank of Canada Carney speaks; Leading Index EUR: German PPI GBP: Prelim Mortgage Approvals; Public Sector Net Borrowing JPY: Monetary Policy Meeting Minutes NZD: No data slated for release USD: Philadelphia Fed Manufacturing Index; CPI; Unemployment Claims; Current Account

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