Australian Dollar:

It has been a busy 24-hours for the Aussie after hitting an 11-week high around 1.0550 the previous session. The currency took a 50-point tumble on Thursday down to an Asian-session low of US105 cents immediately after the release of weaker-than-expected local jobs data. The unemployment rate jumped to a three-and-a-half year peak of 5.6 per cent in March surprising some in the market. While the soft data came on the back of quite strong growth in jobs the previous month, it did underscore the recent easing bias of the Reserve Bank. However, fundamentals went out the window early in the London session which saw a risk-rally towards 1.0580 before easing to Friday’s opening level of 1.0540. Meanwhile, on the cross rates, the unit has hung onto its recent strong gains against the Japanese Yen and opens today at 105.11 which is a five-and-a-half year high.

• We expect a range today of 1.0510 to 1.0595

New Zealand Dollar

Doing well to maintain its recent strength against the US dollar with the 0.8550 mark holding intraday on Thursday, despite a report which showed New Zealand manufacturing grew at a slower-than-expected pace in March. Falling by 2.6 points to 53.4 for the month, the business manufacturing index wasn’t all negative with the underlying read revealing that the food, beverage and tobacco industry still remain strong. The recent move by investors towards risk and higher-yielding assets came to the fore again overnight with the kiwi hitting fresh 20-month highs above 0.8650. Well supported by the ongoing strength of US equity markets the Kiwi opens well supported this morning opening at 0.8630.

• We expect a range today of 0.8600 to 0.8680

Great British Pound:

The British Pound continued to hold up against the US Dollar overnight as Tuesday’s Manufacturing Production data continued to inspire Pound buyers. With stocks in the UK enjoying a upward surge over the last 3 days the Pound has enjoyed a somewhat of revival over the last few sessions with Cable hitting a 7-week high of 1.5410 against the greenback. Local data is on the light side for the remainder of the week however next week’s release of CPI, Monetary Policy Meeting Minutes and the Unemployment Rate will give the market an indication of the health of the UK economy and whether or not things have picked up or deteriorated further on the local High street. Against the Australian and New Zealand Dollars to Pound is changing hands at 1.4570 and 1.7810.

• We expect a range today of 1.4540 to 1.4610

Majors:

For a second consecutive session, the Japanese yen hit fresh four-year lows against the greenback (99.93) and opens at 99.69 as investors continue their foray into higher-yielding currencies. In the short-term, the big dollar may have moved too far too quickly with resistance at the psychological 100-mark. Over the longer term, the recent US Federal Reserve minutes clearly show a growing bias towards a winding down of quantitative easing which will ultimately lend support to the greenback. Still in the United States, unemployment claims fell by more than forecast with initial jobless claims dropping 42,000 to 346,000 in the week ended April 6. Meanwhile, European equities rose for a fourth day with the positive sentiment flowing through to 17-nation currency which hit a 6-week high overnight of 1.3137.

Data releases

• AUD: No data today 
• NZD: FPI m/m
• JPY:Tertiary Industry Activity m/m
• GBP: CB Leading Index m/m
• EUR:ECOFIN Meetings, Eurogroup Meeting, Industrial Productions m/m
• USD:Core retail sales m/m, PPI m/m, Prelim UoM Consumer Sentiment, Business Inventories m/m, Fed Chairman Ben Bernanke Speaks