Traders overnight saw the screens covered in green with equities and risk currencies have a bumper night.  The Australian dollar was able to shrug off yesterday's RBA board minutes which put next week's inflation print as the only thing in the way of a rate cut next month.  The dollar put on 100 pips to peak at 1.04176 USD as newswires across the two sessions saw predominately positive prints and results announced.  The European session was marked with a Spanish debt auction that had hit its maximum target with 3.18 Billion Euros of bills sold leading into a sale of 10 year bonds on Thursday .  The session was further buoyed with German business confidence rising for the fifth straight month and outperforming expectations to come in at 23.4.  European indices the DAX and CAC40 were both up over 2.5% and this helped maintain the Euro above 1.31 USD after its 100 pips move yesterday.

Strong corporate earnings from the States and confidence from the European session helped continue the positive trade on risk assets through to the close on Wall Street.   Although building starts fell to a five month low this was pared with building permits rising, but traders focused more closely on strong earnings from Yahoo, Coke and Johnson and Johnson.   The Dow Jones index and S&P 500 were up 1.5% and 1.55% respectively jumping up the open and maintaining gains through the session.

Although rates stayed on hold in Canada at 1.00%, analysts were quick to jump on the back on the statement which had the Bank of Canada opening the door for a rate rise in the future with its economic performance and inflation outperforming its January estimates although this is not expected until the end of this year.  The US dollar went from buying 1 Canadian dollar at the end of our domestic session to this morning now buoying 99 Canadian cents.

The Australian equity market is expected to follow global equity markets on the open this morning with futures markets point towards of a gain of more than 1%.  The Australian dollar has eased after the close of the US session just below 1.04 USD.  We do have the MI leading index as our only economic print and don't expect this to have a major effect with the performance of equity markets linked closely to the Aussie dollars performance today.