Despite succumbing to moderate greenback strength overnight, yesterday saw the local units return to form come as local employment data well and truly outstripped estimates. The Australian Bureau of Statistics reported the Australian economy added 54,600 new jobs in the month of November from a previous 36,900. This left consensus estimates looking like an arbitrary number with analysts expecting job gains to the tune of around 20,000. The ensuing minutes saw the Aussie dollar surge over 50 pips and remained well bid throughout the dips in US trading. Overnight some of this froth was taken off the top as the US dollar began an ascent on the back of lingering concerns from the Euro-Zone. News out the US was light with no top tier economic data to guide investor sentiment, however weekly jobless claims proved to be a small positive in an otherwise directionless equity market with stocks finishing flat to higher. The number of US citizens applying for unemployment benefits fell to 421,000 from a previous 425,000.

Across the Atlantic the Bank of England kept benchmark interest rates at 50 bps with the value of stimulus remaining unchanged at GBP 200 billion. Sterling looked to be on a path to recovery after the decision with price action returning above 1.58 however dollar strength prevailed with price action resuming a downward trajectory to lows of 1.5711. At the time of writing sterling is buying US$1.5770.

The day ahead brings little in the way of top tier local economic feedback; however news out of China has the propensity to shift price action on the local unit. China will today release trade balance data and property prices for the month of November.  Expect any significant deviation from estimates to spark the usual post-china data release volatility - however the main event will be over the weekend where China will release a print on CPI, Fixed asset investment, Industrial production, PPI and Retail Sales. At the time of writing the Aussie dollar is buying 98.4 US cents.