Euro fell to a 2 day low of 1.3243

*Australian Dollar*: Australia's inflation remains above the central
bank's target 3% for the 4th consecutive month. Prices increased
0.2% from the previous month according to the Melbourne Institute. In
an index compiled by TD Securities Ltd prices increased 3.8% last
month compared to the year prior. The Australian Dollar fell to 0.9860
against the Greenback late in Asia as investors digested China's
restrictive weekend announcements. The Aussie recovered overnight
taking back the 0.9900 US region, reaching as high as 0.9968.

Overnight market sentiment markedly improved as Philadelphia Fed
President Charles Plosser told reporters he has not ruled out
favouring tightening monetary policy 'if economic growth in the
United States continues to gain traction and the prospects begin to
look ever better'. This morning the Aussie opens at 0.9936 US.
* We expect a range today of 0.9870-0.9980

*New Zealand Dollar*: * *The Kiwi traded quietly during Asia
remaining around 0.7680 US Dollars before heading offshore. Overnight
the Kiwi rose to 0.7747 against the US Dollar as investors traded on
sentiment for lack of economic data. During the evening European
Ministers congregated debating how to revamp and strengthen their
rescue fund. Germany, so far the most resistant power, signalled
easing its opposition if a 'comprehensive' approach could be
formulated to inject stability. This morning the Kiwi starts the day
buying 0.7720 US Dollars.
* We expect a range today of 0.7660-0.7770

*Great British Pound*: The Pound made its 7th consecutive day of gains
against the Greenback creating a fresh high at 1.5954 overnight, its
highest level since November last year. British stocks retreated for
the 3rd day as European Finance Ministers discussed new strategies to
contain the sovereign debt crisis and Apple chief, Steve Jobs, was
granted a medical leave of absence. At home, UK house prices gained
0.3% in December while commercial properties increased 6.9% according
to London-based research company Investment Property Databank Ltd.
This morning the Pound opens at 1.5986 against the Aussie and 2.0566
versus the Kiwi.
* We expect a range today of 1.5910-1.6080

*Majors*: Overnight European policy makers met to discuss
comprehensive plans to deal with the region's debt crisis. Market
watchers widely speculating the Ministers will broaden the scope of
the emergency fund. Support for a move to allow purchase of government
bonds in the open market and increasing the size of the fund have been
spear headed by French and Belgium policy makers. The Euro fell to a 2
day low of 1.3243 versus the US Dollar. Suggestive comments from
Philly Fed President Plosser temporarily brought the Euro to 1.3340 US
but the single currency could not hold onto its 1.3300 US handle. With
US markets closed for Martin Luther King Day, investors traded off the
bullish comments from the Philadelphia Fed selling the Greenback down
to 82.34 Yen.

*Data releases*
* *AUD:* No data today
* *NZD:* No data today
* *JPY:* Industrial Production (annual& monthly)
* *GBP:* Nationwide Consumer Confidence, RICS House Price Balance,
CPI y/y
* *EUR:* ZEW Economic Sentiment
* *USD:* TIC Long-Term Purchases, Empire State Manufacturing Index
Source: Fxstreet.com