US Dollar touched 83.11 Yen

*Australian Dollar*: This morning the Aussie opens lower at 0.9879
versus the Greenback. Hotter Chinese growth figures fuelled
speculation policy makers in China will continue raise interest rates
to cool economic growth. China's growth accelerated 9.8% last
quarter exceeding expectations and outpacing 3rd quarter figures of
9.6%. The Aussie reversed its 3 day gains against the US Dollar as
investors abandoned higher yielding assets. Overnight the Aussie fell
to 0.9830, its lowest level in a week.
* We expect a range today of 0.9800-0.9940

*New Zealand Dollar*: * *Consumer prices in New Zealand's increased
2.3% in the 4th quarter after the government increased taxes on goods
and services. Deeming it a onetime effect of the increased sales tax,
the Kiwi fell as statistics agency officials told reporters underlying
price pressures increased 0.3% excluding changes in GST. With
underlying inflation subdued traders hedged their bets on the
likelihood the central bank will remain 'prudent'. The Kiwi traded
sideways for most of the day bouncing between 0.7626-0.7660 US Dollars
before falling to a 3 week low of 0.7530 offshore. This morning the
New Zealand Dollar opens at 0.7580 ahead of retail sales figures.
* We expect a range today of 0.7530-0.7640

*Great British Pound*: A wave of risk selling prompted by concerns
over China during Asia saw the Pound slide towards 1.5900 against the
US Dollar. Moving offshore the Sterling recovered its lost ground in
the lead up to CBI's manufacturing forecast report. Manufactures
recorded a drop in orders of -16 in December, down from -3 in
November. Gains were capped at 1.6010 US ahead of the US session where
the Pound dropped to 1.5835 against the Greenback amid better than
expected US unemployment and housing figures. Meanwhile the Pound
opens at 1.6097 and 2.0961 against the Aussie and Kiwi respectively.
* We expect a range today of 1.6030-1.6215

*Majors*: Better than expected economic data from the US boosted the
Greenback sharply against the Japanese Yen. The US Dollar touched
83.11 Yen after unemployment and existing home sales markedly
improved. Unemployment claims printed 404K versus 441K previously
while home sales increased jumped 12% in December to 5.28 million. The
Philly Fed manufacturing index broke the trifecta falling short of
expectations of 20.7 but still reporting a solid 19.3. Meanwhile the
Euro reached 1.3522 against the US Dollar overnight before falling
below 1.3400 on Dollar strength.

*Data releases*
* *AUD:* Quarterly Import Prices
* *NZD:* Retail Sales
* *JPY:* All Industry Activity Index (NOV)
* *GBP:* Retail Sales, Prelim Mortgage Approvals
* *EUR:* German Ifo Business Climate
* *USD:* No Data Today
Source: Fxstreet.com