European markets found mild support from the opening bell ahead of the European Union meeting in Brussels. The Euro rose to highs of US$1.3800 leading up to the meeting but retraced as the session wore on to lows of US$1.3595 despite a pledge by the EU that they will come to aid of Greece if required. European markets remained fragile as investors continue to ponder the potential fall-out on respective economies in the event of the contagion spreading to other European economies, thus threatening the financial stability of the Euro-Zone. The details of the Greek rescue are expected to be finalised on Monday.
In contrast US Markets breathed a sigh of relief on the news of the EU's support for Greece with the DOW rallying over 1 per cent to finish the day back above the physiological 10,000 mark. US Initial Jobless claims for the week of Feb 6 fell to 440,000 beating the estimated 456,000 new claims from a previous 483,000. The number of job seekers claiming ongoing unemployment benefits for the week of Jan 30 also improved to 4,538,000 from a previous 4,617,000.
The Aussie continued an upward trajectory overnight reaching highs of 89.2 US cents with global investors taking heed to yesterday's surge in employment, suggesting the RBA will return to ramping up interest rates in March. The month of January saw the Australian economy create 52,700 new Jobs, outstripping the 15,000 expected. The month of December also saw a positive revision of 37,500 newly created jobs, against the originally reported 35,200. The ensuing minutes of the release saw the local unit rocket through 88 US cents and flirted with 89 US cents - At the time of writing the Aussie is buying 89.1 US cent, in the absence of major economic data we expect movements to be governed by equity which is likely to be given a leg up by a positive lead from the states.