In the absence of major economic data in the States overnight, greenback movements were governed by equity market activity which failed to continue the momentum from recent days, as weak earnings reports hindered market optimism. We saw mild strength on the US dollar aided by a retreat in crude oil and less than convincing economic data from Europe. Overnight saw the ZEW Indicator of Economic Sentiment suggests the economic outlook for the Euro-Zone is still shaky, with the index declining 5.1 points for the month of November to 51.8 points. The consensus was for a rise to 58.9 points. The ZEW indicator also suggested a lull in confidence in economic outlook in Germany, with the index registering at 51.1 points for the month of November, down 4.9 points from October, however the German Consumer Price Index in line with consensus rising 0.1 percent for the month of October, against a decline of 0.4 percent in September. 

The UK trade balance came in worse than expected with the deficit rising to GBP 7.2 billion in September, from the downwardly revised GBP6.1 billion in August. Yesterday saw the pound thumped against major counterparts after ratings agency Fitch said the UK is most at risk of losing AAA status among major economies but overnight has made back most of yesterday's losses, the pound is currently buying US$1.6740.

The Aussie dollar has returned above 93 US-Cents after slipping to lows of US$.9260 overnight. Yesterday saw the Aussie rise on the back of economic news which suggested Australian economy is in good stead, with the National Australia Bank monthly index showing Business Conditions rose to the strongest levels since January 2008 - we expect today's Westpac Consumer Confidence data for November to also take a similar line, which could fuel gains the local currency today. Selling pressure remains in the mid US$9320's which could cap a possible break out.