Risk aversion saw the greenback gain the upper hand overnight as US equity markets lost ground under the weight of renewed recovery concerns. Despite weekly Jobs figures showing that new applications for unemployment held steady at a 10-month low, the balance of risk fell to the greenback carrying on from yesterday's Asian session, which saw investor's return to the low yielding Yen and US Dollar. US Jobless Claims for the week of November 14 remained unchanged at 505,000. A small concession was Continuing Claims which fell by 39,000 to 5,611,000 on the week of November 7.

Positive production figures marked a small greenback retreat across the board as the Philadelphia Fed Manufacturing Survey rose to a level of 16.7, from 11.5 in October. By default, greenback strength saw the Aussie slide through 92 US-Cents to lows of US$.9132. At the time of writing the local unit is buying US$.9195. In another domestic session, light on economic data we expect the Aussie dollar to be governed by moves in the equity markets which are likely to get off to a negative start, courtesy of a retreat in commodities, metals and energies overnight. The exception to falling metal prices was Gold which stands firm at US$1,145.00 a troy ounce.

The upside on the Aussie dollar appears to be limited in the domestic session; however the Bank of Japan interest rate decision today could throw projections of kilter.  Although interest rates are expected to stay at 0.10 Percent, a negative interpretation of economic conditions going forward could see another spate of selling in Asian stocks, resulting in a risk fuelled surge in low yielding 'safe haven' of the Yen and US Dollar.