Australia: The US Fed's Beige book painted a pretty unimpressive picture of the US economy, while the ongoing Greek debt crisis seems to be going from bad to worse.

These events combined were enough to cause a return to risk aversion, sparking a sell off in equity markets throughout the Northern Hemisphere.

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The AUD traded down through USD1.0600 as a result, although some buying interest this morning has seen the local unit trade back towards USD1.0650.

Later this morning we have the release of Australian employment numbers for May.

The market is expecting an increase of approx. 25k in the number of employed, with the unemployment rate expected to remain steady at 4.9%.

Expect the AUD to trade within a tight range this morning ahead of the data.

Majors: After an uninspiring summary about the current state of the US economy from Federal Reserve Chairman Ben Bernanke on Tuesday, the overnight release of the Fed's Beige book only served to reinforce the view that the US economy continues to struggle.

The release showed there had been a slowing in 4 of the 12 regions.

Adding to the negative outlook, Ratings Agency Fitch recently said that it would potentially put US debt on watch in August.

The EUR came under pressure again overnight after further uncertainty emerged over the ability of the EU, the ECB and the IMF to resolve the Greek debt plan any time soon.

With so many parties involved in the negotiations it seems unlikely a solution will be forthcoming in the short term.

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