The U.S dollar resumed its north-bound run overnight with global markets remaining under the negative influence of Euro-region uncertainty. Although we saw moderate value spotting from some corners of the market which assisted European equities to post solid gains, currencies told a decidedly different story with risk currencies recording deep losses against the perceived safety of the greenback.

After making significant headway throughout yesterdays domestic and in early European trade, the Australian dollar resumed its downward rout overnight with price action briefly crossing the downside of 98 US cents earlier this morning, representing fresh 6-month lows. At the time of writing the Australian dollar is buying 97.9 US cents. The Euro followed a similar trajectory with which once again fell below the $US1.27-handle and remains under pressure around current levels of 1.2675.

U.S stocks erased earlier gains with continued uncertainty across the Atlantic the primary catalyst. A solid existing home sales report provided some earlier upside momentum, however European fears dominated by the close with the DOW and S&P500 finishing flat on the day.

With no major local economic releases on the docket, we expect regional equities to remain the key barometer for the Australian dollar with the Japanese interest rate decision also a primary focus across markets. Despite the risk-off environment, the Japanese Yen made a significant downturn in the lead up to today's interest rate decision. A material shift in Yen demand was noted after a surprise downgrade of Japanese debt by Fitch with the ratings agency also placing Japan negative watch with rising public debt the catalyst for the downgrade. The USDJPY pair briefly broke the Y80 levels earlier this morning and currently remains supported just shy of this technical and physiological milestone.