After days of speculation, Greece has named Lucas Papademos to succeed ousted leader George Papandreou. Papademos, a former Vice President of the European Central Bank is seen as politically neutral and well equipped to deal with the struggles ahead as a technocrat rather than a professional politician.

A successful Italian bond auction took some of the heat off Italian debt with 10 yr yields retreating back through the 7 percent levels. The focus was on France after ratings agency Standard and Poor's mistakenly sent a message to clients suggesting France's credit rating had been changed - however S&P quickly retracted the change citing a technical error and re-affirmed the triple-A rating. Nevertheless, some corners of the market remain skeptical over France's economic health considering the mistake more of a Freudian slip or a precursor for things to come.

German consumer prices remained steady at 2.5 percent on year - with the harmonized index suggesting a slight rise to 2.9 percent from the pervious and expected 2.8 percent. Meanwhile the Bank of England held benchmark interest rates steady at 50 bps with no change to the £275 billion quantitative easing measures.

Across the Atlantic, the theme of stronger economic data continued with US weekly jobless claims falling to 390,000 against expectations of 400,000. The DOW and S&P 500 indices managed to squeeze out some gains by the close finishing up 0.96 and 0.86 percent respectively.

The Aussie dollar has sunk to lows of 100.5 US cents overnight before regaining composure through-out US trade coinciding with mild strength from US equities. With little in the way of major market moving themes from a local perspective, we should see the Aussie trade in a reasonably tight range throughout the domestic session. We expect the local until to be supported around 101 US cents with a break to the upside unlikely to make a significant move through the 102 US cent levels. China is due to release new Yuan denominated loan data throughout the session which could provide some short-term direction for the local unit. At the time of writing the Aussie dollar is buying 101.5 US cents.