Australia: The AUD is trading lower this morning, weighed down by better than expected US employment data overnight.

The AUD was already looking heavy yesterday after the disappointing local jobs report was released before lunch. Australia's jobless rate stayed at5.0% in January while total employment rose by 24,000,however only 8,000 of those were full time employment.

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The AUD fell below USD1.0100 as the market took profits following the disappointing employment figures.

Overnight we saw the AUD get as low as USD1.0010, with a test ofthe USD1.0000 a possibility today as the Asian time zone digests the US employment figures from last night andevaluates the current unrest in Egypt.

There is no majordata being released today.

Majors: The USD was stronger overnight, becomingattractive to investors following some stronger initialjobless claims numbers.

The US Labor Department said initial jobless claims fell to a seasonally adjusted 383,000 (market expected 410k) in the week ending February 5,down nearly 9% from the week prior.

a href="http://ibtimesau.wufoo.com/forms/global-markets-daily-newsletter/" target="_blank">These numbersalong with previous week's data has some suggesting that eventually this will be translated into stronger payrolls numbers, which the market is anxiously waiting on for further confirmation of an economy recovery.

Elsewhere the Bank of England kept their interest rates on hold, even though inflation has surpassed the banks 2% level.

Investors will now wait to see what the Bank's InflationReport due to be released on 16 February has to say about the bank's current thinking is on its inflation situation.

The EUR came under pressure from the volatilesituation in Egypt, leading investor's into safe haven buying.

Market speculation had mounted that Egypt's President Mubarak might announce his resignation.

However in a televised address early this morning he saidhe would remain in power until elections in September.

This has caused further anxiety in the market about political upheaval, pushing riskier assets lower.
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