NZD: The NZD kicked off the overnight session around its high of 0.7218 and slowly dropped in value throughout the day. No economic data was published overnight as the kiwi followed the Aussie dollar south. The DOW posted a negative day down just over 1% leaving NZD feeling heavy. Currently NZD is trading just below 0.72 the figure as it looks for further direction offshore. Technically we are still in a bullish channel 0.7070 the support line. No data locally published today.

AUD: Australia’s central bank extended its pause in raising interest rates “for the time being” as concern that the global economic recovery may falter. This weakened the dollar 30 points on the announcement. Governor Glenn Stevens kept the overnight cash rate target at 4.5% for a fourth month. Julia Gillard held on to power as Australia’s first female prime minister after two independent lawmakers agreed to prop up a minority Labor Party government to resolve the country’s closest election in 70 years. Currently holding above 0.91 the figure as investors look towards AUD Home Loans 1.30NZT today.

EUR: The Euro fall across the board reaching new lows. EUR/USD broke below 1.2700 and fell to 1.2682, hitting the lowest price since September 1. The pair is posting the biggest daily decline in almost a month weakened by risk aversion. Concerns are rising that the health of the European banks would deteriorate as they hold the government debts, the stress tests of the major European banks underestimated some holdings of the government debt. The European Union performed the stress test of the banks in July, this certainly damping the outlook for Europe’s economy. EUR trading at 1.2678 this morning.

GBP: The Pound extended its recovery in the last hours of London trading against the Dollar. Cable managed to hold above 1.5300 and rose to 1.5374. The Greenback lost momentum as equities lost ground in Wall Street, near daily lows. House Price Index and Manufacturing Production published tonight 8.30 NZT. Currently trading at 1.5356, just below today’s opening price.