The greenback stabilized following yesterday's steep declines against the major currencies, pushing the euro beneath the 1.47-level to 1.4660 while holding the Aussie below the 0.89-figure. There was a dearth of US economic reports in the Wednesday session prompting foreign exchange traders to take their cues from the equity and commodities markets. Spot gold extended gains to a new record high at $1,048.20 per ounce while oil drifted beneath the $70 per barrel level to settle at $69.57 per barrel. Meanwhile, US equity bourses were slightly lower with the Dow Jones posting a 0.40% decline and both the Nasdaq and S&P 500 were marginally lower.

The economic calendar for Thursday will see weekly jobless claims, which are expected to ease to 540k, wholesale sales, seen edging up to 0.70%, and wholesale inventories, anticipated to post a 1.0% decline.

Euro Consolidates

The euro relinquished some of its previous session's gains versus the dollar, drifting as traders look ahead to European Central Bank's policy announcement, slated for 7:45 AM. Although the Bank is expected to interest rates unchanged at 1.0%, markets will closely scrutinize the subsequent press conference by ECB President Trichet. Particularly following the RBA's surprise rate hike earlier in the week, traders will gauge the likelihood for an ECB rate hike over the coming months and closely analyze Trichet's outlook for economic recovery in the Eurozone.

Data released overnight revealed a worse than expected Q2 GDP reading, which declined by 0.2% on a quarterly basis versus a downwardly revised 2.5% contraction previously, while the revised annualized GDP reading revealed a 4.8% contraction, improving marginally from a 4.9% decline. Germany's August industrial orders increased by more than expected, edging up to 1.4% compared with 3.1% from July.

EURUSD holds steady near 1.4675, with interim resistance eyed at 1.47, followed by 1.4740. Subsequent ceilings are seen at 1.4770, followed by 1.48 and 1.4850. On the downside, support begins at 1.4640, backed by 1.46 and 1.4550. Additional losses will be tempered at 1.4520, followed by 1.4880 and 1.4840.