The Australian dollar performance after yesterday's trade balance data saw it hit five month highs versus the greenback, but these highs were short lived as it retreated back to under 1.07 USD at the end of the European session. The continued failure to reach agreement of private Greek bondholders also saw the Euro slide down to lows of 1.3085 as negotiations continue to fuel EURUSD volatility. However the US session saw the Euro regain a chunk of what it had shed earlier as strong weekly jobless claims data saw US stocks pare back earlier losses. Recent days have seen the Euro struggle to maintain momentum once it trades close to 1.32 USD. This key resistance point should be breached if we do see solid a Non-farm tonight coupled with agreement with Greek bondholders early next week.
Those traders on currency intervention watch have one foot in and one foot out of the door at the moment. The EURCHF has risen enough away from the floor to take pressure of the SNB for now, it sits at 1.20480 half a cent above their imposed floor. An improved performance from Swiss exports which advanced 6.1% in November help eased the recent pressure. While language from the Bank of Japan is more aggressive with Japanese Finance Minister Jun Azumi commenting they are ready to take decisive action helping lift the USD dollar from the 76 Yen level. October 31st was the last point at which they intervened and the pair is ¾ of a Yen from touching the same point that spurred the previous selling of Yen by the BOJ.
The paring of US stocks also helped the Australian dollar regain composure from the European session as is pushed towards 1.075 resistance level finishing the US session at 1.071 USD. Although there was some soft leads from US and European stocks we expect today's session to be muted like the first week of any month with currency traders readying for US non-farm payroll and US unemployment data later tonight. 150,000 new jobs are expected to be added and 8.5% rate holding steady.