:: Australian Dollar: After staging an early morning rally the Aussie dollar ran into some stiff resistance ahead of 0.8780 to pull back and enter offshore exchange around 0.8720. In relatively uneventful overnight exchanges it remained range bound between 0.8710 and 0.8750 for the majority of the session and opens this morning at 0.8720. At present it appears the AUD/USD is likely to remain range bound awaiting further cues from offshore or Thursday’s local economic data, whichever comes first.

- We expect a range today in the AUD/USD rate of 0.8700 to 0.8750

:: Great Britain Pound: The Cable broke through early London resistance at 1.5065 to post an eventual overnight high of 1.5125, its highest level in over 7 weeks. Comments from Prime Minister Cameron reinforcing the new government’s pledge to reign in the deficit and a rally on the FTSE helped confidence in the Pound Sterling despite a lack of any economic data and a rise the Greenback against the Euro. EUR/GBP was one of the largest movers overnight as the GBP strengthened from 0.8220 to 0.8120. This morning sees the Pound open near its highs at 1.5100 and 1.7320 against the U.S and Australian dollars respectively.

- We expect a range today in the GBP/AUD rate of 1.7175 to 1.7275

:: New Zealand Dollar: The NZD was dealt a blow yesterday with the NBNZ business confidence survey showing a large decline from 48.2 to 40.2. As a consequence the NZD dropped entering early London trade at 0.7075, down from early Monday morning highs around 0.7150. With no real market moving news overnight the Kiwi traded sideways bouncing between support and resistance 20 points either side of this morning’s open at 0.7080 for the majority of the session. This morning sees the release of May Building Permits which will need to deviate significantly from the previous months +8.5% result in order to have any effect on the currency markets and push NZD/USD out of its overnight range.

- We expect a range today in the NZD/USD rate of 0.7050 to 0.7120

:: Majors: Offshore markets returned from the weekend somewhat disappointed with the rhetoric from the G20 meetings buying safe haven currencies such as the Greenback and Yen. EUR/JPY fell from 110.50 in European trade to enter the U.S time-zone below the psychological 110 level. Inflation data out of Germany came in a little lower than economist forecasts with the preliminary year to June figures indicating CPI fell from an annualised rate of 1.2% to 0.9%, also weighing on the EUR/USD which eventually hit a low of 1.2265 down from the Asian close of 1.2355. In U.S economic data the Fed’s closely watched core PCE, a measure of consumer spending, increased marginally from 0.1% to 0.2% beating forecasts for an unchanged 0.1% result.

:: Data Releases: AUD: No Data Expected Today NZD: May Building Permits USD: Jun Consumer Confidence GBP: Jun GfK Confidence Survey & Mortgage Approvals EUR: Jun Business Climate Indicator & Jun Industrial Confidence JPY: May Industrial Production, May Jobless Rate & May Household Spending

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