:: Australian Dollar: The Australian Dollar opens sharply lower this morning at US71 cents. The Aussie moved to an overnight high of 0.7268 during European trade, however profit-takers soon emerged taking it back down to a low of 0.7095. The local unit was buoyed during local trade yesterday on the back of higher local equities and stronger-than-expected retail sales for November. The Aussie's recent link with equities remains intact as the currency headed in a straight line down during the New York session as US markets retreated on the back of some poor US jobs data.

- We expect a range today in the AUD/USD rate of 0.7000 to 0.7160

:: Great Britain Pound: Pound Sterling moved higher against the greenback overnight and opens today at 1.5107, its first time above 1.5000 in three weeks. Most of the pound buying overnight was against the Euro however as market participants speculate that the European Central Bank will step up the pace of interest rate cuts. The pound may have found some support at recent levels despite the strong likelihood of UK interest rates hitting all-time lows after tonight's Bank of England meeting. Meanwhile, the pound is also sharply higher against the Australian Dollar (2.1250) and the New Zealand Dollar (2.5550).

- We expect a range today in the GBP/AUD rate of 2.1000 to 2.1350

:: New Zealand Dollar: The New Zealand Dollar opens lower against the greenback this morning at 0.5916 as equity markets in Europe and the United States moved down. The kiwi hit an overnight high of 0.6033 during European trade but declined steadily during the entire New York session to hit the key support level of US59 cents. The local unit was supported yesterday as New Zealand's monthly trade deficit narrowed to $520mio in November as exports rose faster than imports compared to a year earlier. The kiwi has managed to outperform the Australian Dollar overnight and opens this morning at 0.8300.

- We expect a range today in the NZD/USD rate of 0.5820 to 0.5950

:: Majors: The Euro opens higher against the greenback today at 1.3599 after a private report released by ADP Employer Services in the United States showed that 693,000 jobs were eliminated in December. This figure was far worse than the 495,000 predicted by most economists and has reinforced investors expectations for a protracted recession. The Euro traded between a low of 1.3430 and a high of 1.3746. Weaker U.S. equities at time of writing were also weighing on the big dollar which has also retreated against the Japanese Yen from an overnight high of 94.14 down to this morning's opening level of 92.65.

:: Data Releases:

• AUD: Trade Balance, Building Approvals, Nov

• CAD: IVEY Purchasing Managers Index, Dec

• EUR: Euro Zone Unemployment Rate, Nov; Euro Zone GDP Q3; German Trade Balance, Nov

• GBP: Bank of England Rate Decision

• JPY: No data expected

• NZD: No data expected

• USD: Consumer Credit, Nov

:: 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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