Risk assets were once again off the boil overnight as the US dollar found strong support as traders had little in the way of confidence to support risk appetite. A poorly attended Spanish debt auction where 2.59 billion of a possible 3.5 billion Euros of bonds were sold overnight saw the Euro take a solid hit and at its worst was down 1 cent versus the Greenback through the two overnight sessions. The European Central bank did hold firm and kept its overnight rate at 1% in line with market expectation but German factory orders from February slipped and monthly European Retail Sales came in at -0.1%, which was lower than expected. Global indices were pummelled with the FTSE, DAX and CAC40 all down by more than 2% and that was followed by the 1% fall on US indices.
Data from the States was more encouraging than that out of Europe and in turn assisting the Australian dollar to remain reasonably composed, albeit under moderate pressure. It traded in a tight range between 1.028 and 1.024 USD as traders welcomed a solid ADP Non-Farm Employment Change at 209,000, a touch higher than estimates. Similarly traded was the Pound, which was also quite steady overnight and it was supported by stronger than expected Services PMI which ticked up to 55.3 helping the Pound to finish US session 1.589 US Dollars.
Domestically it is a quiet day in terms of economic news with the overnights performance of global equities likely to influence today's trade. The Aussie dollar has seen support at 1.024 overnight and from a short term perspective selling appears to have moderated as we approach overnight highs ahead of the open of local equity markets.