Despite US equity markets managing to squeeze out some mild gains overnight, the appeal of the Aussie dollar waned amid renewed concerns Greece’s economic struggles are far from over. The light at the tunnel is dim for investors who continue to ponder how the European nation will meet its financial commitments which to date totals EUR300 billion. Overnight, representatives from Greece, IMF, EU and the ECB kicked off discussions in order to nut out the finer points of the rescue package and how the ailing economy will take steps to rein in their budget deficit. Meanwhile the government overnight also announced a series of austerity measures designed to increase tourism. The moderate decline in investor’s optimism spurred on support for Gold which is currently trading US$7 higher at US$1146 an ounce.
The Greenback was mostly stronger against major counterparts however Sterling was able to remain well bid on the back of better-than-expected jobs data. UK claims for unemployment benefits fell by 32,900 in March, outstripping the decline of 10,000 expected.
In the absence of market moving economic data we can expect currency movements to be driven by equity markets – which are at this point looking like a slightly softer open. On the downside, key technical support sits around the 92.4 US cents levels, on balance appears to be shaping up for a reasonably slow data for the local unit. At the time of writing the Aussie dollar is buying 92.75 US cents.