The Aussie dollar has resumed momentum overnight breaking back through 90 US cents to highs of 90.3 US Cents. The latest burst of energy comes courtesy of a return to strength in global equities and key commodities, placing downward pressure on the greenback. Better than expected quarterly profit reports in the US kept investor confidence high, exacerbating US Dollar weakness. The US dollar index which measures the dollar's value relative to six major foreign currencies is currently down 0.87 per cent at 79.63. We expect the strength in global equities to resonate through the local market today which is likely to keep the Aussie at the very least well supported. Local economic indicators include the Westpac and the Melbourne gauge of economic sentiment which could provide some moderate upside for the local unit given a strong result.
Economic feedback abroad overnight saw the NY Empire State Manufacturing Index for February rise to 24.91 from a previous 15.92 - economist had predicted a more moderate rise to 17.1. The Euro-Zone ZEW economic sentiment index fell to 40.2 in February against a previous reading of 46.4 - analyst had expected the index to fall a lesser extent to 42.6. German ZEW Index also fell but beat expectation recording a reading of 45.1 in February from a previous 47.2 against a predicted fall to 42. Despite the less than convincing ZEW result, investor sentiment grew positive as fears of Greece's economic woes subsided, given they are now under the eagle eye of the European Union