The Australian dollar turned higher overnight coinciding with mild strength from US equities rising to highs of 99.5 US cents. However it was the Aussies record breaking run against the Euro and sterling that stole the show. The local unit smashed recent all time highs recording strong gains against the out-of-form Euro rising to 75.8 Euro Cents and remains well bid around 75.7 Euro cents. Throughout the latest bout of ill health from Europe the common theme of Aussie dollar strength against the Euro remains firmly intact. Although It's clear the best grounds for further upward moment from the Aussie comes against major counterparts is when the sun is shining, the local unit has displayed a tendency to continue a slow upward trajectory against the Euro is most economic settings. Even when the Euro was returning from the doldrums against the greenback of USD 1.19 in June this year to recent highs of USD 1.40, the Aussie dollar continued a slow appreciation against the Euro. Barring any major economic surprise to the downside from a local perspective - or China for that matter, the bias remains to the upside.
Local economic feedback today will see the release of the RBA minutes for the December meeting which are due for release at 11.30 AEST. Like always the minutes will be examined eagerly for any clues; however the market is well and truly prepared for a tone of neutrality from the RBA. Given the fact we've seen more evidence of robust employment activity since the meeting, this may find the minutes a little stale in the eyes of investors. Recent employment data showed the Australian economy added 54,600 new jobs in the month of November from a previous 36,900 well in excess of estimates. At the time of writing the Aussie dollar is buying 99.3 US cents.