After spending a period below 103 US cents overnight, the Aussie dollar saw moderate gains through the latter part of U.S trade as equity markets regained composure after a disappointing start to the session. Benchmark indices finished lower on the day with concerns over the state of U.S employment came to fore after a less than inspiring private sector jobs report. The ADP private sector employment gauge showed 119,000 jobs added in April falling short of the estimated 170,000. We've seen a recalibration of expectations ahead of Friday's official non-farm payrolls data with the ADP gauge seen as an important precursor ahead of the main event. U.S corporate earnings have largely been a supportive factor for markets, given the earnings season is coming to a close it's a question of where the next boost going to come from. Although we had a particularly solid ISM manufacturing number earlier in the week, the ADP employment data overnight casts a shadow over the health the employment sector which naturally has a negative short-term influence on markets. 

Earlier in the session official German unemployment data failed to meet estimates with Euro-Zone manufacturing PMI also ticking down slightly. In essence this serves to highlight the vulnerabilities seen across the periphery have made their mark on the heart of the Euro-Zone.  The U.S dollar remained the currency of least resistance with concerns from both sides of the Atlantic providing moderate support at the expense of risk currencies such as the Euro which succumbed to selling pressure to make a break to the downside of $US1.32.

Economic releases during domestic trade include the AIG performance of services index at 10.30am AEST with Chinese services PMI due for release at 11am AEST. Barring any major surprise from Chinese services PMI we anticipate a reasonably narrow range during local trade with 103.5 US cents likely to attract some selling attention while a break through support of 103 US cents likely to be contained around the 102.75 US cent region. At the time of writing the Australian dollar is buying 103.2 US cents