Australian Dollar:
Yesterdays stronger than expected Australian economic data provided some level of support for the Aussie dollar at 0.8330 during the local session sending it into early European exchange on its highs pressing against 0.8380. Resistance at these levels proved too strong to overcome and the AUD/USD spent the majority of the offshore session drifting lower. Demand for the Greenback against the majors saw the Aussie move closer to 0.8250 and opens this morning at 0.8275. The local market will have data in the form of Q2 Private Capital Expenditure and the June Conference Board's leading index to digest however the main event comes in the form of this evenings U.S GDP number.

- We expect a range today in the AUD/USD rate of 0.8225 to 0.8300

Great Britain Pound:
With an absence of any U.K economic data overnight the Cable took direction from movements in the Greenback overnight. After pressing against 1.6350 resistance in early London exchange the Pound Sterling ran out of momentum and retraced to 1.6300 heading into key U.S data releases. A rise in Durable Goods orders by the most in two years and a 9.6% jump in U.S New Home sales saw demand for the big dollar resurface, pushing GBP/USD to an eventual low of 1.6160. A weaker Aussie provided some respite for the ailing GBP/AUD cross rate, rallying from 1.9470 to open this morning on its highs at 1.9630.

- We expect a range today in the GBP/AUD rate of 1.9520 to 1.9720

New Zealand Dollar:
For the second consecutive overnight session the Kiwi attempted, in vain, to break above the 69 cent mark. Buoyed by early confidence surrounding the Euro the NZD gained ground however momentum dissipated and the Kiwi found itself backpedalling for the majority of the night. Support below 68 cents provided some level of consolidation as it spent the majority of the U.S trading day bouncing between 0.6790 and 0.6820. This morning sees the release of N.Z July Merchandise trade data with the deficit expected to increase from -418 million NZD to around -480 million mainly due to rising imports.

- We expect a range today in the NZD/USD rate of 0.6775 to 0.6835

Majors:
The Euro received a boost in early offshore trade from an upbeat German IFO report on the business climate in Europe's largest economy. Sentiment amongst the seven thousand German executives surveyed increased for the fifth consecutive month during August taking the index to 90.5, its highest level since September last year. The EUR spiked to a high of 1.4350 against the Greenback following the release of the report before settling between 1.4300 and 1.4320 for the majority of the European trading day. In U.S economic data both Durable Goods and New Home Sales data beat expectations reinforcing signs of a rebound in the economy. The big dollar jumped against the majors after the data hitting a high near 1.42 and 94.50 against the Euro and Yen. Investors are now keenly anticipating key releases out of the U.S this evening with all eyes on Q2 preliminary economic growth and personal consumption data.

Data Releases:
• AUD: jun Conference Board Leading Index & Q2 Private Capital Expenditure
• NZD: Jul Trade Balance
• USD: Q2 Prelim GDP & Q2 PCE
• GBP: Q2 Total Business Investment & Q2 CBI Quarterly Distributive Trades
• EUR: Aug Prelim CPI & Sep German GfK Consumer Confidence
• JPY: No Data Expected today
• CAD: No Data Expected today

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.

Regards,
OzForex Dealers
OzForex | Foreign Exchange Services

www.ozforex.com.au
Aust: 1300 300 424
NZ: 0800 161 868
UK: 0845 686 1950
Canada: 1800 680 0750
Int.: +61 2 8667 8090
Fax: +61 2 8667 8080

Regulated in Australia by ASIC (AFS Licence number 226484)
OzForex Pty Ltd ABN 65 092-375-703
Member of FOS (Financial Ombudsman Service)

IMPORTANT : This information has been prepared for distribution over the Internet and without taking into account the investment objectives, financial situation and particular needs of any particular person. OzForex Pty Ltd makes no recommendations as to t he merits of any financial product referred to in its website, emails or its related websites.
Please view our Product Disclosure Statement
Please view our Privacy Statement
Please view our Dispute Resolution Policy

The information in this email is confidential and may be legally privileged. The contents may not be disclosed or used by anyone other than the addressee. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful. OzForex Pty Ltd cannot accept responsibility for the accuracy or completeness of this email as it has been transmitted over a public network. If you suspect that the email may have been intercepted or amended, please call the sender. When addressed to our clients an y opinion or advice contained in this email is subject to our terms of business. OzForex Pty Ltd have taken every reasonable precaution to ensure that any attachment to this e-mail has been swept for viruses. However, we cannot accept liability for any damage sustained as a result of software viruses and would advise that you carry out your own virus checks before opening any attachment.

Unsubscribe from this email at: www.ozforex.com.au/subsuccess.asp?action=unsub&email=contents@ibtimes.com

9368

United kingdom