Continuing its earlier losses from Europe, the dollar index spent the New York trade heading lower as the lack of fresh incentives saw traders homing on relief that the worse of the European debt saga may now be over. On the local front equity performance was also none too encouraging for the greenback with a strong start following an impressive pres-session earnings report for Google and GE proved difficult to sustain with US Indexes seeing mixed results in the end. By the close tech heavy Nasdaq Composite was down -0.55% to 2,689.54 while DJIA ended firmly at 11,871.84 up 0.41% and the broader S&P 500 saw marginal gains to 1.283.35 up 0.24%. With the Q4 earnings releases starting to heat up we could expect currency markets to once again be volatile and erratic tracking closely the numbers as they begin to come in though it will be to the dollars disadvantage for the most part should we see stronger results. Ahead in Asia, the mixed performance from US indices may likely see us with a cautious start though from the currency end we expect for the greenback to remain on the defensive. About the only thing to watch for the Asian session will be quarterly PPI results expected to come in at 0.5% quarter-on-quarter. Given fresh assessments over the damage wrought by the floods in Queensland the Aussy will likely find itself in the defensive.

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