Greenback strength has thrown the Aussie dollar's north-bound course off track overnight as investors balanced escalating geopolitical unrest in Egypt amid signs the US employment sector is on the straight and narrow. In the last two sessions, US markets have been able to put the geopolitical turmoil in Egypt to one side to concentrate positive earnings from corporate America and robust economic data, but it seems these concerns are starting to weigh on risk appetite once again which is generally US dollar-positive. It wasn't all bad news however with Private sector payrolls released by ADP providing investors a positive glimpse ahead of Friday's non-farm payrolls. Payrolls in January surpassed expectations to record jobs growth of 187,000 in January against estimates of 140,000 new jobs. With the appeal of the US dollar somewhat rejuvenated the local unit was unable to continue the upward trajectory seen in the previous two sessions. The day ahead will see the local unit contingent on trade balance data with the primary focus no doubt on the fallout from tropical cyclone Yasi which swept through far north Queensland overnight.  Building approval numbers will also be released at 11.30 AEDT. At the time of writing the local unit is buying 100.9 US cents.

Across the Atlantic we're seeing renewed European sovereign debt concerns manifest in Euro price action after Ireland had its debt rating cut by Standard & Poor's. The Euro's had a solid run of late amid signs of inflationary pressures which may pave the way for sooner than expected interest rate hikes from the European Central Bank. Tonight Euro traders will be eagerly awaiting further insight from the ECB as they reconvene on interest rates.  So what for the fortunes of the Euro? The answer to this question is as tough as a conundrum the ECB face on how to balance inflationary pressures with a list of economies struggling under the weight of high debt and borrowing costs. At the time of writing the Euro is buying US$1.38.