Australia: After drifting around USD0.9800/0.9850 yesterday, the AUD rallied back towards USD0.9900 overnight as investor sentiment turned positive once again.

Worries about Europe and China seemed to of subsided, providing support for most risk sensitive currencies.

US shares got a boost from a surprisingly strong reading on regional manufacturing from the Federal Reserve Bank of Philadelphia, while commodity prices also rose against a back drop of positive sentiment.

The AUD almost touched USD0.9900 before retreating slightly lower during offshore trade, this morning we have opened at USD0.9885. With no key data today in Australia or the US, markets today will be on alert for any announcements out of China, with some market rumors suggesting that they might announce a series of tightening measures to curb inflationary pressures.

Majors: The EUR bounced sharply Thursday night as a rescue plan for the fiscally impaired Ireland was thought to be imminent.

The prospect of a bailout came as a relief to investors with memories of the near fiscal collapse of Greece still fresh in their minds. Officials from the EU, European Central Bank and International Monetary Fund are in Dublin to examine the country's finances and
troubled banking system.

It's suggested that the aid package could include the activation of the European Financial Stability Facility, the EUR440 billion emergency loan program established to help euro-zone countries refinance their debts.

Investor sentiment turned positive on the news of the package overnight and the EUR and other higher yielding currencies all rose against the safe-haven USD.

As we head into the weekend, markets will await any further announcements from euro-zone policy makers on Ireland's situation.

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