In the absence of major economic data overnight, currency movements remained subdued, albeit in favor of the greenback which has clawed back earlier losses. The US dollar index which measures the dollar's value relative to six major foreign currencies is currently at 80.44 up 0.01 percent. The stronger dollar came at the expense of Key commodities and US equities which struggled to remain buoyant, in-turn weighing on higher yielding currency such as the Aussie dollar which slipped from overnight highs of 91.3 US Cents. A proposal by the European commission to set up International Monetary fund to aid struggling economies such as Greece also weighed on market sentiment. It seems investors translated the premise of a life-line as a sign Europe may have some problems yet to surface. Locally, we expect the direction of the Aussie to be guided by equity market movements and local economic feedback due for release.
Local economic data today includes ANZ job advertisements data for the month of February which recorded a contraction of 8.1 per cent in January swallowing the previous 6 per cent surge in December. We also have National Australia Bank Business Survey; however we expect equity market activity will be the key barometer for the direction of the Aussie dollar. At the time of writing the Aussie is buying near day lows of 90.8 US Cents.