Australia: When we got started this morning, the AUD was trading at USD 1.0701, down from USD 1.0853 at close local time yesterday and actually got as low as USD 1.0664.

The sell off hit crude oil prices on yesterday's US Government data, on rising crude oil and gasoline inventories. Commodities were also sold off, with silver falling 8% and copper crumbling to its lowest level since December 2010.

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So the result of this sentiment was a boost demand in for safe haven currencies, (JPY and amazingly, the Greenback), at the expense of commodity currencies like the Australian dollar.

We say amazing because well, we think we know you understand. It is such a conundrum this USD. The announcement of Chinese inflation remaining above the 3% comfort / target level, and this led to talk of further monetary tightening which is a resistance to global growth.

Throw in more concerns on Greece's debt. Looking at our AUD, we have employment data released at 11.30am AEST with expectations of a fall of 5k and unemployment rate to stay at 4.9%.

With support found at USD 106.50, and if data is low, we expect the market might reassess timing of RBA hike. Lastly, talk of hikes, when and how many are wide ranging with some seeing four hikes in 12 months.

If that happens and the US rates stay where they are, carry trade is
so on.

Majors: USD strength returned despite US equities tumbling after a strong showing the night before.

The sell off in commodity and energy prices was the culprit this time.

EUR/USD traded in a tight range but gradually waned on Greece while GBP/USD was bullish on the back of a hawkish inflation report, with BoE Governor King concerned inflation remains "uncomfortably high".

A trend we're seeing in many major economies...Lastly, it is worth looking at US march Trade Deficit, which hit a 9-month high but if you exclude higher oil prices, the data was reasonably encouraging with exports jumping 4.6% led by increases in cars, industrial supplies and consumer goods.

The weak USD might just be having the impact wanted.

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