Australia: The Australian Dollar has opened weaker this morning, currently trading around the parity level after trading to a low of 0.9970 in the offshore session.

The sell off came as investors sought "save haven" buying with the tensions in Libya continuing to concern markets. Libyan leader Muammar Gaddafi yesterday ordered his forces to crush an uprising that has rocked his 41-year rule, warning armed protesters they will be executed.

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The Middle East tension saw oil extend it rally up overnight by US$7.37 to be trading at US$93.57. Our thoughts are with those in New Zealand devasted by the earthquake in Christchurch.

The negative impact from tjhis most recent earthquake has led the market to believe there is no chance for a rate hike by RBNZ until 2012.

Today will see the RBA Governor Glen Stevens speaking on "The Resource Boom" this morning while on the data front will see the release of the Australian Wage Price Index and the
Australian Construction work done data for Q4.

Majors: In the US overnight equity markets returned from the Monday holiday and saw a sharp sell-off after the stock markets in Asia fell from risk aversion concerning the Middle East.

Political unrest in Libya remains the focus of the northern hemisphere markets at the moment.

Should Gaddafi remain defiant, safe haven flows will most likely continue with US Treasuries expected to rally strongly. With this ongoing concern, markets almost ignored the stronger than expected US consumer confidence and house price releases.

ECB rate rises have been given a boost from hawkish comments by various ECB officials ahead of next week's meeting.

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