Global markets hit reverse overnight as Italy's economic health remained under the microscope. Italian debt peaked at Euro-era highs, with 10 yr yields surpassing the 7 percent levels - a significant miles stone which in the past has marked the bailouts of Greece, Ireland and Portugal. There's little doubt the European debt debacle has mutated into something more sinister - the heart of the Euro-zone is now facing the greatest risk seen since the crises began.

Greece also remained in focus with little in the way of closure over who will succeed Papandreou's leadership. Risk currencies slid with the greenback the prime beneficiary, recording solid gains across major counterparts. A decidedly stronger US dollar provided natural resistance across commodity, metal and energy markets.

US stocks plunged as market participants pondered the potential repercussions should the Euro-zones third largest economy falter with the DOW and S&P falling 3.2 and 3.67 percent respectively.

The Aussie dollar followed the south-bound path of risk assets with price action crashing to lows of 101.36 US cents. Besides the obvious headwinds to be carried over from overnight, the day ahead will see the focus on local employment data which is expected to show the Australian economy created 10,000 new jobs in October against a previous 20,400. The unemployment rate is expected to tick higher from 5.2 to 5.3 percent.

From a currency perspective, the future for the Aussie is well in truly in the hands of global risk trends - a stand-out performance from local jobs may provide short-term buoyancy however the critical barometer will remain the events of abroad. Focusing on the downside we expect initial support to slow the Aussie's descent around 101 US cents in the local session, with parity the obvious next level of both technical and physiological support.