The Aussie dollar is marginally higher in the domestic session currently buying 88.7 US Cents. In the absence of local economic data we expect the Aussie to remain buoyant on the back the relative strength of equity markets, which have followed the overnight lead from Wall Street to squeeze out some moderate gains. A decline in market participants over the Christmas/New year period has seen exaggerated currency movements with the general market noise resulting in protracted price activity, which is a theme likely to continue leading up to year end. The greenback lost mild ground against major counterparts in overnight trade - The US dollar index which measures the value relative to six major foreign currencies fell .07 per cent to close the session at 77.67.
The exception was the Japanese Yen, which continued an accent against the US Dollar rising to highs of 91.8 US Cents in overnight trade. Recent months have seen Japanese officials warn against excessive strength of the Japanese Yen, which surged to 14 year highs against the greenback late last month. As the Yen makes ground against major counterpart's japans exports become less price-competitive against competing economies, thus hampering an export fuelled recovery.
Key data from the Euro-Zone tonight includes preliminary Consumer Price Index data for the German economy which is expected to show annualised growth of 0.7 per cent. The US will see the release of Consumer Confidence for December which is predicted to increase to a level of 53.0 from 49.5 in the previous month.