The greenback continued its winning streak overnight, with European markets kicking off the preceding with a severe case of Mondayitis. This comes courtesy of a broad based retreat in key commodities, which continue to suffer under the weight of the latest surge of the US Dollar. The primary trigger was Friday's outperforming Non Farm Payrolls which fell by 11,000 in the month of November, outstripping the 125,000 cuts predicted.
Overnight the Euro and sterling resumed the downtrend after finding moderate support in the domestic session, with both currencies pummelled by the in-form Dollar falling to lows 1.4756 and 1.6313 respectively. A slight concession was the Sentix Euro-Zone investor confidence which showed mild signs of recovery, but still falling short of expectation to record a reading of 5.5 in December.
In a speech in Washington, Fed Chairman Bernanke was careful to paint a realistic view of the economic outlook, stating the economy faces formidable headwinds, and reaffirmed the fed's stance on interest rates to remain at current levels for an extended period. This saw the greenback pare gains but still keep the upper hand against major counterparts.
The Aussie dollar mirrored movements of the Euro and pound to fall to lows of 90.5 US cents as commodities continued to slide. True to form the price of Gold diverged from dollar movements - at the height of dollar strength Gold hit lows of US$1135 an ounce and rebounded when the US dollar lost ground on the back of the Bernanke speech.
At the time of writing the Aussie is buying 91.5 US cents ahead of the release of Business confidence data from the National Australian bank today which could be a supporting factor for the Aussie. Yesterday saw the local unit find mild support from ANZ Job advertisement data which rose 5.2 per cent for the month of November following a decline of 1.7 per cent in October. This is a particularly encouraging sign the Australian economy is on the straight and narrow and will more than likely become evident in Thursday official jobs report, which is expected to show an additional 5,000 jobs created in the month of November.