Australia: Overnight saw the AUD hold to the USD0.9300 level, as the offshore markets continued tohold onto the strength seen in the local markets yesterday.

With the US and European markets digesting the better than expected Chinese data released over the weekend, this saw an increase in equity markets, commodity prices and as a result 'riskier' currencies such as the AUD strengthened further.

The DOW was up 0.8% to 10544 with the S&P and the Nasdaq up 1.1% and 1.9% respectively. Overnight, the AUD rallied towards the mid USD0.9300's and its possible the AUD will continue to pushing higher as the week progresses, although there is some fairly strong resistance at USD0.9400. Today sees the release of the NAB business survey.

After a dismal result in July with business confidence falling to a 14- month low, many will be hoping to see some more positive data.

Although with the uncertain conditions experienced in the market during August as well as the uncertain political standpoint for a large part of the month, it may not be a positive as many are expecting.

Majors: The EUR/USD has had its most impressive night, posting its biggest one-day gain since mid July as investors looked to buy up the EUR on the back of encouraging weekend data as well as the clarification on the Basel III rules.

The EUR rose from USD1.2700 to almost USD1.2900, which his a rise of about 1.5%.

The main influence on the gain was the news that banks who do not currently comply with the new capital requirements will have more time to get their affairs in order than previously expected.

This means that the negativity against the European banking sector has subsided, at least for now.

Tonight in the US we have Retail Sales for August and ABC Consumer Confidence for September.

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