NZD: Kiwi had a run at the top-side again last night but failed to break through 0.7400,topping out at 0.7393. Markets in a state of limbo overnight with good corporate results versus poor economic numbers. The equities markets providing little inspiration as the DJIA was up a mere 16 points at the close. In particular the market focussed on the U.S July Consumer Confidence Index numbers which dropped for a second straight month down to 50.4 from a revised 54.3.Kiwi came back as a result, to a low of 0.7310 and opens here 0.7325. Expect a range trading day prior to RBNZ tomorrow.

AUD: Much like the kiwi, AUD had an initial run higher but couldn’t break aggressively through 0.9050 topping out at 0.9067. It came back as the US data was released but held the 0.900 level on the pullback. Today we get Australian CPI numbers which will be a good indicator for future RBA rate intentions as they spelt out last week. Generally of only medium importance the market will watch this number closely. AUD opening here at 0.9025.

EUR: The EUR rallied to a fresh high again overnight at 1.3045 but failed to hold gains again. This despite the fact that German Consumer Confidence unexpectedly improved to 3.9 from a revised 3.6 in the previous month. Time will tell if the ECB will change its economic assessment as the growth and inflation outlooks grow. EUR pulled back to a low of 1.2948 before edging back through 1.3000. It does look like slowly but surely the EUR is establishing itself above 1.3000.

GBP: You can’t hold a good thing down! Despite the news on BP in the UK, sterling continues its run. BP officially announced Robert Dudley would replace Tony Hayward as CEO on Oct 1, and also that their second quarter loss was US$17.2 bio!! As a result their stock fell close to 3%.
Also rumours of a huge protest by Greenpeace of BP service stations. All this should have put downward pressure on GBP but it didn’t last. A report by the Confederation of British Industries showed retail sales surged at the fastest pace for 3 years with household spending increasing to +33 from -5 in the previous month. GBP touched a high of 1.5598 and now above its 200day moving average again. GBP Opens here at 1.5590