The star performer this week has been the Euro amid concerns the economic health of Portugal may result in the nation seeking financial assistance. The Euro made a convincing rise back through US$ 1.31 to current levels and session highs of 1.3145 after an auction of government debt was met with healthy demand.
Tuesday's news of Japan's intent to buy-up European debt has temporarily allayed fears of an imminent bailout for Portugal and allowed bond yields to retreat from the highs of over 7 percent levels. Nevertheless, in a mirror image of that of the first two bailout recipients Greece and Ireland, Portuguese authorities remain adamant financial assistance is not required.
The buoyant market mood surrounding the successful sale of Portuguese debt spilled over to US markets, with US equities rising to two year highs. In a surprising turn of events the Aussie dollar was able to resume an uptrend overnight as key commodities and global markets recorded solid gains.
The local unit rose to highs of 99.65 US cents after yesterdays selling spree which saw the Aussie fall to lows just shy of 98 US cents. With the events from flood ravaged Queensland remaining a primary driving factor, the short-term price action remains in a vulnerable position despite the strength seen overnight - however the next major risk event for the local unit will be today's unemployment data due for release at 11.30am AEDT.
Economist's estimates suggest the Australian economy created 25,000 new jobs in the month of December against a previous 54,600 to bring the unemployment data down from 5.2 to 5.1 percent.
Today's numbers are of particular importance and any significant deviation from estimates may result in a strong reset of price action - however the short term bias remains to the downside given a mediocre result. From a technical perspective any move to the upside will likely be meet resistance around the 99.9 US cent levels - with post-parity levels also holding natural resistance.