Australia: The Australian Dollar has opened weaker this morning and is trading just above USD 0.9700 after yesterday's tension in Korea following the North Korea artillery fire on a South Korea island, killing two people.

The AUD was sold along with "risky assets" as investors sought safety in the Greenback and away from commodities and equities.

Base metals were weaker overnight with copper down 1.8%, zinc 2.4% and nickel flat.

Gold edged higher to be trading at US$1,375 per ounce while crude oil was slightly lower at US$81.47 a barrel.

The Dow finished 1.3% lower and European equities were lower as well.

Today will see the release of the Australian Construction Work Done data, which is expected to report a rise of 1.7% for Q3.

Today locally direction will be likely be driven from Asia with the North & South Korean tensions will be at the forefront.

The AUD is likely to remain under pressure today with support building around the 0.9650 level.

Majors: EUR/USD was supported to begin with overnight however this changed with comments from the German Finance Minister Schaeuble.

His statement that "Germany is not swimming in money but rather drowning in debt" with the Euro "at stake" was pretty blunt stuff.

Patience with some (or most) of the other member nations of the Euro Zone is wearing thin, with no-confidence votes in Ireland, Moody concerns for Portugal and Spain and more talk about possible European contagion.

Tensions in Korea led to a rally in the USD, US Treasuries and gold and as a result, a sell off in commodity currencies.

US data passed almost without notice and the market was more interested in FOMC minutes, which showed Kansas City Governor Hoenig was the only official dissenter to the decision to expand Quantitative Easing.

Others voiced concern about the inflationary consequences of the policy decision, however concerns over employment and growth
determined the majority to push ahead with QE.

A busy day is expected ahead of Thanksgiving Day Long Weekend.

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