Euro rose to its highest level reaching 1.3537 US Dollar

*Australian Dollar*: A decline in consumer confidence did not hamper
the Australian Dollar as it broke parity with the Greenback. According
to an index compiled by Westpac consumer sentiment in Australia
declined to a 7 month low of -5.7% in January on concerns the
devastating floods will weaken the economy. The Aussie strengthened to
a 2 week high of 1.0075 versus the US Dollar ahead of Chinese reports
which are expecting economic growth to remain above 9% for the Asian
giant. This morning the Aussie opens at 0.9992.
* We expect a range today of 0.9930-1.0110

*New Zealand Dollar*: * *Risk was onside for the New Zealand Dollar
as it rose to its highest level this year against the US Dollar.
Momentum from IBM and Apple's positive earnings helped fuel the
Kiwi's rally to 0.7786 against the Greenback. Reports from China
today are expected to show inflation has cooled while growth remains
stable for the global key player. The New Zealand Dollar starts the
day buying 0.7690 US Dollars ahead of today's NZ inflation report.
* We expect a range today of 0.7640.7720

*Great British Pound*: Mixed employment figures from the UK weakened
the Pound against Greenback with the pair sliding to 1.5944 upon
release before rising to 1.6036 overnight. Jobless claims unexpectedly
fell -4100 in December to the lowest in 21 months. The decline in
jobless claims did not reduce the nation's unemployment rate which
printed at 7.9%. A matter of concern for investors was wage growth
which did not keep pace with inflation, increasing only 2.1%. The
Pound opens slightly higher against the Aussie at 1.6000 and 2.0793
versus the Kiwi.
* We expect a range today of 1.5940-1.6050

*Majors*: Overnight the Euro rose to its highest level in almost 2
months reaching 1.3537 US Dollars. Figures out of the US indicating
the country's economic recovery may remain sluggish. Housing starts
declined to the lowest levels since October 2009 weakening the Dollar.
The larger than expected number of US building permits could not shrug
off the bearish cloud of sentiment hanging over the Dollar as it
weakened again the Japanese Yen to a 2 week low of 81.84 offshore.

*Data releases*
* *AUD:* MI Inflation Expectations
* *NZD:* CPI Q4, Business Manufacturing
* *JPY:* Leading Index (Nov)
* *GBP:* CBI Industrial Order Expectations
* *EUR:* German PPI m/m, ECB Monthly Bulletin, Consumer Confidence
* *USD:* Unemployment Claims, Philly Fed Manufacturing Index
* *CNY:* CPI y/y, GDP q/y
Source: Fxstreet.com