:: Australian Dollar: The Australian Dollar opens at a 3-month high against its U.S. counterpart at 0.7250 as commodity prices continue their recent run higher. Positive sentiment has returned for the time being as local equities posted solid gains yesterday. Over the last 24 hours the Aussie has traded between a low of 0.7031 and a high in late New York of 0.7267. Poor data releases in the US, Europe and the UK overnight further increased the recent return of risk appetite towards high-yielding currencies such as the Australian and New Zealand Dollars. On the local data front, November retail sales is set for release this morning. The Aussie is sharply higher against the Euro today at 0.5350.

- We expect a range today in the AUD/USD rate of 0.7130 to 0.7285

:: Great Britain Pound: Pound Sterling opens higher this morning at 1.4957 despite another round of poor economic data releases. UK house prices had their biggest drop since 1991, down an annualised 15.9 per cent and 2.5 per cent lower than the previous month. Consumer confidence in the UK is also down with sentiment falling to its lowest level since the report began in 2004. The pound hit an overnight low against the US Dollar of 1.4502, but managed to recover after the release of lower-than-expected inflation data out of Europe which triggered a wave of Euro selling. Meanwhile, the pound is largely unchanged against its antipodean rivals opening this morning at 2.0580 against the Australian Dollar and 2.4950 versus the New Zealand Dollar.

- We expect a range today in the GBP/AUD rate of 2.0400 to 2.0650

:: New Zealand Dollar: The New Zealand Dollar opens one cent higher this morning against the U.S. Dollar at 0.5984 as firmer stock markets and commodity prices underpin the currency's recent run higher. Investors have been taking a more optimistic view of high-yielding currencies in recent days as Europe and the United Kingdom contemplate further cuts to interest rates to revive their flagging economies. Local traders meanwhile will be looking closely at today's November trade release for near-term direction. The kiwi has also strengthened further against the Euro and is currently changing hands at 0.4420.

- We expect a range today in the NZD/USD rate of 0.5900 to 0.6000

:: Majors: The Euro opens weaker again today at 1.3512 after Europe's inflation rate fell to the lowest level in more than two years. The call for further interest rate cuts in Europe is getting louder as consumer price inflation for November came in at 1.6 per cent as oil prices plunged and spending slumped. The Euro was punished on the release of this news and traded as low as 1.3311 against the U.S. Dollar. Meanwhile, economic data released in the U.S. overnight was not much better with pending home sales down 4 per cent in October and factory orders down twice as much as expected in November as businesses across the country cut costs. The big dollar however has managed to hang onto its recent gains against the Japanese yen and opens today at 93.93 after trading at an overnight high of 94.62.

:: Data Releases:

• AUD: Retail Sales, Nov

• CAD: No data expected

• EUR: German ILO employment, Nov; Eurozone PPI, Nov

• GBP: No data expected

• JPY: No data expected

• NZD: Trade Balance, Nov

• USD: ADP Employment change, Dec

:: 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.

United kingdom Retail sales Inflation