Australian Dollar: The Australian Dollar opens higher on Friday just shy of US84 cents as recent positive economic data bolsters sentiment. During Thursday's local session, the Australian Bureau of Statistics announced that the trade deficit for July widened by A$1bio to a larger than expected A$1.556bio. Imports were up by 4 per cent which the market interpreted as showing businesses and consumers were doing well and defying international trends. Also underpinning the local unit was a steady session on local equities and a stronger gold price (US$992) that is marching towards the US$1000/oz mark.

- We expect a range today in the AUD/USD rate of 0.8320 to 0.8440

Great Britain Pound: Pound Sterling strengthened against the greenback overnight and opens on Friday at 1.6320. Market sentiment turned positive as the purchasing managers index (PMI) for the services industry increased to 54.1, the highest level since September 2007. In overnight trade the pound moved between a low of 1.6236 and a high of 1.6413. However, the gains were not across the board and the pound is lower against both the Australian Dollar (1.9426) and the New Zealand Dollar (2.4080).

- We expect a range today in the GBP/AUD rate of 1.9300 to 1.9520

New Zealand Dollar: The New Zealand Dollar opens higher on Friday at 0.6770 and tracked the Australian Dollar higher during the offshore session. The kiwi hit an overnight high of 0.6830 but the gains were short-lived as strong resistance this side of US69 cents emerged once more. Also keeping a lid on any moves higher at the moment is the likelihood of positioning ahead of next Thursday's interest rate announcement by the Reserve Bank of New Zealand. On the cross rates, the kiwi is stronger against the pound (0.4140) and steady against the Australian Dollar (0.8050).

- We expect a range today in the NZD/USD rate of 0.6700 to 0.6830

Majors: The Euro (1.4251) weakened overnight as European Central Bank (ECB) President Jean-Claude Trichet said the economic recovery will be bumpy whilst keeping interest rates at a record low of 1 per cent. The Frankfurt-based ECB did raise its economic forecasts for the region predicting growth of about 0.2 per cent in 2010. Currency markets were looking for comments that may have upgraded growth a little more and as a result the Euro traded overnight between a high of 1.6413 down to a low of 1.6236. Meanwhile, the greenback picked up some ground against the Japanese Yen (92.60) for the first time in several sessions after the August ISM index of non-manufacturing businesses rose to an 11-month high of 48.4 from 46.4 in July.

Data Releases:

  • AUD: No Data Today
  • CAD: Unemployment rate, Aug
  • EUR: No Data Today
  • GBP: New Car Registrations, Aug
  • JPY: Capital Spending, Q2
  • NZD: No Data Today
  • USD: Non-farm payrolls, unemployment rate, July

Note: The above exchange rates are based on interbank rates. If you are considering a transfer then please login, register or call us for a live dealing rate.

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