Australia: The AUD pushed over parity during yesterday's local trading session and has gained even further overnight as some risk appetite returns to the market.

The AUD has opened this morning above USD1.0050. With the AUD now sitting comfortably above parity, it's likely to continue to test the top side resistance should the markets post further gains today.

[Get this delivered to your inbox for FREE. Subscribe to our daily Markets Newsletter.]

While intense fighting in Libya still continues, news that the nuclear crisis in Japan may be closer to being under control and the impact that the earthquake and tsunami will have on the global economy might not be as bad as markets first thought, has helped lift investor sentiment and buoy the markets.

Equity markets have also felt the positive affects with the DOW and the S&P closing up 1.5% this morning; the third positive day in a row. With a lack of data to be released today, it's likely that we will see the AUD continue to track equity markets and also headlines out of Japan and Libya.

Majors: News out of Europe overnight was another factor in the markets which has seen a more positive tone than in recent weeks.

There is speculation that at this week's EU summit the ministers will agree to funds a new EUR500bio permanent rescue mechanism which will be put in place in 2013.

This is likely to provide more favourable interest rates than the current European Financial Stability Facility.

This, as well as the continued inflation talk from ECB officials in preparation for a likely interest rate hike this month saw the USD/EUR push through EUR1.4200 resistance hitting its highest level since November 5 2010.

The USD/EUR has opened this morning at EUR1.4217. Data out of the US overnight was not all positive with existing home sales falling 9.6% to their lowest level in 9 years.

This is not a good sign as the US continues to battle a struggling housing market. It is hoped however that poor weather conditions are to blame and that next months results may see a bounce back.

More from IBT Markets:
Newsletter: To receive Global Markets update, sign up here