Market Brief

The Australian dollar and Japanese Yen traded higher in the Asian session as resurfacing fears that a U.S led recovery to the global economy would take much longer than the recent accrue in optimism has led markets to believe. The Yen's haven status shone through as it gained against 13 of the 16 majors. The other great FX performance was the Aussie dollar – which is 35% higher than it's 52-week low near 0.61 in October of 2008. We are witnessing a substantial retracement on the Asian Session bulls but data out today will show if these moves are sustainable or not.

The strong GDP data from the Aussie economy sent the AUD higher for the 5th day in a row. The Australian economy actually grew last quarter by 0.4% defying the rule that signals a recession – two consecutive quarters of negative growth. The strong performance of businesses down under and the swift response by the government has greatly benefitted the Aussie dollar – as the benchmark rate for interest rates didn't need to be lowered to the extent of the larger northern-hemisphere economies.

The ADP data out today will be the focus of the data news while Fed Chairman Bernanke's testimonial at 14:00 GMT will complement or dissuade what ex- Fed chairman Paul Volcker said yesterday on the U.S economy and it's slow path to recovery. ADP data is expected to show further declines in employment numbers 2 days before the Non-Farm payrolls are out. Bad U.S data doesn't necessarily mean a negative for the greenback as risk aversion has been a dollar bull since this crisis started.

Global Indexes Current Level % Change
Nikkei 225 Index9241.67+ 0.39
Hang Seng Index18576.47+ 1.02
Shanghai Index2778.59+ 1.99
FTSE 100 Index4392.14- 1.90
DAX Index5116.01- 0.55
DJIA futures8636- 0.25
Nasdaq futures1477+ 0.55
World Markets Current Level % Change
Gold980.55- 0.13
Silver15.955- 0.06
VIX29.63- 1.37
Crude wti68.25- 0.44
USD Index78.81+ 0.49
Todays Calender Estimates Previous Country / GMT
USD Challenger Job Cuts-47.00%USD / 11:30
USD ADP Employment Change-533K-491KUSD / 12:15
USD ISM Non- Manufacturing45.043.7USD / 14:00
USD Factory Orders0.7%-0.9%USD / 14:00
USD Fed Chairman Bernanke Testifies--USD / 14:00