The premise of further quantitative easing assisted US markets to regain composure overnight with comments from Fed officials suggesting another round of stimulus may be on the cards. Markets still resembled the same cautious demeanor we've seen recently which assisted Gold to forge an all-time high for the umpteenth time of $US1,673.00 a troy ounce earlier in the session. In tune to the recent stream of uninspiring economic news, the ISM services index failed to meet estimates to record a level of 52.7 in July from the expected 53.5. Factory orders fell 0.8% in June from a rise of 0.6% in May. However, private sector jobs data from ADP beat expectations recording 114,000 new positions in July against an expected 100,000.

A bright spot in the risk currency spectrum was the Euro which recorded gains against major counterparts after a Euro-zone official flagged the possibility of maintaining the European Financial Stability Fund after its planned expiry in 2013. Meanwhile the left field event for the night came from the Swiss National Bank who in a surprise move cut interest rates by 25bps to zero in effort combat significant gains in the Swiss franc. The bank also backed up their move with a verbal warning to "take further measures against the strength of the Swiss franc if necessary". After earlier recording all-time lows, the EURCHF pair bounced on the news with price action moving to highs of CHF1.1150 from all-time lows of CHF1.0794.

After hitting lows of 106.8 US cents the Aussie dollar was able to pare losses coinciding with stronger US equities buoyed by the noise of further stimulus. From a technical perspective we expect the local unit to be met with resistance around 107.8 with any downside to be contained at overnight lows of 106.8 US cents.

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