Australia: This morning the AUD is fairly unchanged from the levels traded yesterday, currently trading around USD0.8900.
With a lack of economic data and thin liquidity in the US equity markets due to the summer holidays, movements during the offshore session were limited.
The AUD took a tumble yesterday morning as the market digested the news that a winner was yet to be determined from Saturday's Federal Election and that a hung parliament was the likely outcome.
This appears not to have a lasting impact with the currency recovering steadily during the day.
US equity markets were down overnight with the DOW and the S&P500 both down 0.4%. The level of the S&P currently is the lowest level in five weeks.
It is hoped that a raft of US data due out this week including existing home sales and the manufacturing index both due out tonight might alleviate fears of a double dip recession.
With a lack of local data it's expected that the AUD will follow the movements of the equity markets; which could be weaker as the likelihood of a Labour Government increases and the mining stocks decline as a result.
Majors: The EUR/USD was weaker overnight despite some better than expected results which showed continued expansion.
The pair has opened this morning at USD1.2650. The manufacturing and services PMI results released showed a light weakening in activity; manufacturing for August was 55.0 down from 56.7 last month and the services index was 55.6 better than market expectations of 55.4.
With continued fears over Europe's economic stability the data saw investors move towards the safe haven USD.
Germany is releasing a large amount of second quarter economic data this evening including trade data, private consumption and capital and construction investment.
Since Germany is Europe's strongest economy, positive results could see the EUR/USD strengthen again.
The USD/JPY was stronger overnight as investors speculated that Japanese officials may be further away from taking action to slow the JPY's appreciation than previously thought. This has seen the AUD/USD fall to below USD76.00.