Australia: Yesterday we had the release of some weaker than expected jobs numbers and this was the catalyst for the AUD's sell-off back below USD1.0600.

The Australian Bureau of Statistics reported that the number of employed was up 7,800 in May against forecasts of 25,000. The unemployment rate remained steady at 4.9%.

[Sign up to get reports daily in your inbox]

Higher commodity prices and a return of risk appetite overnight however saw the AUD trade back towards USD1.0650.

Positive economic data out of the US was the main factor encouraging investors to make more risky investments.

With no major data being released locally today, the market will be closely watching China's release of its Trade data which is expected to show a surplus of US$19.8 billion.

If the number comes in as expected or higher the AUD is expected to rally.

Majors: The European Central Bank and Bank of England kept rates on hold overnight in widely expected moves by both of the central banks.

The European Central Bank President Jean-Claude Trichet did again signal that another rate hike was on its way and as a result the EUR initially rallied.

However those gains were quickly wiped out when Trichet repeated his opposition to a restructuring of Greek debt.

In the US, investors were surprised when the US Commerce Department reported the trade deficit had fallen to a seasonally adjusted $US43.7 billion from US$46.8 billion in March.

The market was expecting a deficit of US$48.7 billion.

The smaller than expected deficit was due to stronger exports which a weaker USD would be contributing too.

US equities also finished higher for the first time this week, supported by the positive trade balance figures. There is no major data being released offshore tonight.

More from IBT Markets:
Subscribe to get this delivered to your inbox daily
Follow us on Facebook.
Follow us on Twitter.