Australia: Why the enhancement in risk appetite? Greece.

There is a growing sense of optimism that the Greek austerity plan will be passed tonight.

[Join us on the Forex Traders Community]

The new head of the IMF urged the Greek opposition to pass support the package as indications from German banks emerged that they agree with the Finance proposal for a voluntary rollover of Greek debt.

The AUD found support with these developments and moved higher from 1.0440 to a full US cent higher.

Financial markets face stern tests over the next 6 months with the end of the hugely accommodative QE2 tomorrow, the continuing threats of European sovereign debt contagion, a slow ing China and mixed data being released about the US economy.

In Australia today, DEWR's skilled vacancy survey for Q2 along with some releases offshore. We see the AUD trading in a pretty tight range today between 1.0480 and 1.0580.

Majors: European markets were choppy with GBP hit hard after the release of disappointing data and reports from Reuters that up to one in six European banks may fail the EU-wide stress tests.

EUR/USD strengthened to 1.440 as comments from ECB President Trichet were made regarding the ECB remaining "strongly vigilant".

Base metals were stronger, spot oil bounced back and soft commodities gained lost ground as well.

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