Daily Forex Commentary November 26

- We expect a range today in the AUD/USD rate of 0.6400 to 0.6600

:: Great Britain Pound: Pound Sterling climbed for a third straight session against its US counterpart and is currently trading at 1.5452 as equities hung onto recent gains and demand for high-yielding assets received a boost. The gains may be short-lived however as tonight sees the release of third-quarter GDP which is expected to be negative and the UK central bank signalled last week that it is prepared to cut borrowing costs further to stimulate the economy. Meanwhile, the pound has also surged overnight against its southern hemisphere rivals and is buying 2.3800 Australian Dollars and 2.8250 New Zealand Dollars.

- We expect a range today in the GBP/AUD rate of 2.3650 to 2.4000

:: New Zealand Dollar: The New Zealand Dollar opens steady this morning at 0.5470 and has managed to hang onto the gains of the previous three sessions after a range of weak economic data in the United States overnight weakened the greenback. Further gains are likely to be limited for the Kiwi after yesterday's local inflation expectations were revised downwards adding weight to the theory that the Reserve Bank of New Zealand will cut interest rates at its next meeting on December 4. Meanwhile, the kiwi is slightly stronger against its trans-Tasman rival and opens today at 0.8425.

- We expect a range today in the NZD/USD rate of 0.5350 to 0.5580

:: Majors: The Euro opens stronger against the greenback today above 1.3000 after the US Commerce Department announced that the US economy shrank by more than expected in the third quarter. Gross domestic product was down 0.5 per cent which is the sharpest fall since 2001. Also weighing on the big dollar was other weak data releases including the Case-Shiller home price index and the Richmond Fed manufacturing index, both of which were down on the previous month. Meanwhile, the Japanese Yen rose against both the greenback and the Euro for the first time in 3 days as fears of a global recession prompted some investors to sell high-yielding assets and retreat once again to safe havens.

:: Data Releases:

* AUD: Preliminary Construction work done, Q3

* CAD: No data expected

* EUR: German CPI, Q3

* GBP: GDP, Q3

* JPY: No data expected

* NZD: No data expected

* USD: Personal Income/spending; PCE deflator/core, Durable goods order, Oct; Chicago PMI, Uni of Michigan confidence, Nov