It was another solid session for the Australian dollar which has once again made a break above the 104 US cent levels. The local unit bounced during the U.S session after early bottoming out at 103.58 US cents.
The IMF intends to broaden their war-chest in an effort to further promote global stability in light of the Euro region debt crises, which could see the IMF expand their reserve capacity by up to $US500-billion. With the U.S seemingly off limits, the question remains where does the fund turn to for addition funding? There's been speculation the IMF may hit-up emerging or so called 'BRIC' economies with Brazil, Russia, India and China the likely candidates. For now the premise of additional capital in the IMF's cunning kit has inspired confidence across markets - but we're unlikely to see anything in concrete until the G-20 meeting in Mexico City on the 25-26 of February.
The Euro found natural support on the back of the IMF news with price action once again above $US1.28, to overnight highs of $US1.2865. Meanwhile, Greece has re-entered the spotlight as Government and private sector representation resumed talks which could see private investor's write-down as much as 50 percent - an agreement is expected to be announced by week-end.
Local data on the bill today will see the release of ANZ Consumer confidence data with the highly anticipated December employment numbers due at 11.30 AEDST. It's expected the Australian economy will create 10,000 jobs in December from a previous drop of 6,300 with the unemployment rate expected to remain at 5.3 percent. The Aussie dollar is currently trading at 104.2 US cents with short term resistance noted at 104.3 and 104.5 US cents. Nevertheless any significant deviation to the upside of estimates will likely see gains contained at 105 US cents. Naturally, we're expecting anything less than inspiring to promote downside with 103.5 US cents a likely target.