This week's trend of weak strong European sessions followed by US session sell off's was flipped on its head last night with some better than expected data from the States and that news the ECB could exchange Greek bonds for new securities. The ECB bond swap deal indicates that the second bailout is nearing and markets took their chance to run with it, the Euro which had slide to 3 week lows managed to recoup the last few day's losses against the US dollar.  It traded from a low of 1.29738 up to an overnight high of 1.31586 USD.  Also helping drive the gains through the US session was a lower than expected weekly jobless claims and continued strong Philly Fed Manufacturing Index with both the Dow Jones and S&P up .94% and 1.06% respectively, driving up risk assets. 

The last fortnight has seen the Bank of Japan and the Government pushing to drive the Yen down in response to their struggling exporters and economy.  Overnight's risk-on session saw the Yen break further ground with the US dollar peaking at 78.953 Yen, and unlike past intervention points the Yen has not retreated and appreciated in the days after.  Also those riding the carry trade versus the Australia dollar would have seen the AUDJPY pair trade at highs last reached in early August last year up to 84.987.

After yesterday's surprise unemployment data coupled with overnight bullish US session the Australian dollar traded up within 23 pips of 1.08 USD this morning.  We don't have anything of note in the form of economic data today so much of the impetus for the Australian dollar will be driven by the performance of the stock market.  The Aussie has flattened off in the tail end of the US session and is at the time of writing sitting at 1.0747 USD.