Australia: The Australian Dollar has opened above USD0.9100 after a night in which ambiguity and uncertainty presented themselves to the markets again.
In yesterday's session, late afternoon trading saw the AUD rise through 0.9100 and this continued offshore as oil prices rose.
Higher yielding currencies were supported amongst the release of slightly weaker than expected data reports and renewed speculation regarding Quantitative Easing measures by the US Federal Reserve.
AUD/EUR is trading near 0.6900 whilst AUD/JPY weakened to high 77.00's on lower US interest rate expectations and our Trans Tasman cross rate, the AUD/NZD is flat at 1.2439.
The strong showing in the local share market, in which the S&P/ASX200 Index had its highest close since 22 June, is helping the AUD as has been the case for some time now, particularly since the GFC.
We saw stocks rally immediately after 2.30pm AEST yesterday when the RBA Board announced its decision to keep official interest rates steady.
There is potential our AUD is overbought here, and may struggle to sustain these levels north of 0.9100, given we have seen the AUD appreciate 12% against the USD.
Majors: The US dollar was weaker against the major currencies overnight following some weaker than expected data releases, with Wall Street drifting slightly lower as a result.
The US Pending home sales reported a fall of 2.6% in June, weaker than the expected rise of 3%, and on the heels of the whopping 30% decline in May.
Additionally, the release of US factory orders fell 1.2% in June following a 1.8% decline in May. These weak releases placed pressure on the US Dollar.
The pressure on the Greenback is likely to continue against the majors, with reports that the Federal Reserve will consider monetary policy change (as stated above) amidst concerns the US economic recovery is slower than had been expected to reduce unemployment and remove the social ugliness of a jobless recovery.
Leading into Friday's non-farm payrolls report, there may be some profit taking.