Overnight gains posted on the S&P and most of Europe's stock markets are providing a good starting point for Australian markets on Thursday after a flat finish yesterday.

"The S&P remains in focus after closing at its highest level since 28 July 2011, above the key 1300 zone. This is also above the 76.4% Fibonacci retracement of the May to October sell-off at 1301. This opens the S&P up for further gains, with some chartists now targeting 1370," noted markets analyst Stan Shamu from IG Markets

Shamu said in an emailed notification to clients, the Australia dollar will be in the limelight in today's trading as "appetite for the currency will pour in."

Australian Dollar, Unemployment Rates

"With risk appetite improving, AUD/USD will be in focus today. The pair bounced off support at 1.036 yesterday and charged to a high of 1.04311 this morning," he explained.

Australia's national employment numbers, due out at 11.30am, will also set as a changing catalyst for the currency pair of the AUD/USD.

Analysts are expecting the Australian unemployment rate to remain unchanged at 5.3% with 10,200 jobs added. An improvement on these numbers in the absence of bad news from China or the eurozone could trigger further gains for AUD/USD. Near-term resistance for the pair is at around 1.045.

Andrew May, Sales Trader, CMC Markets New Zealand said investors are still keen to gamble in the forex markets with the persisting uncertainty in the European economies.

"The NZD/USD also heralded its first post 80c level (0.8030) for 2012 early this morning stoking demand for high yielding currencies after stronger than expected Chinese growth (GDP) figures (Dec YoY) of 8.9% were recorded against market expectations of 8.7%. This indicates monetary policy is indeed easing for the People's Bank of China," added May in an emailed note.

"There's certainly been repercussions galore for northern markets as investors seek safe haven currencies amidst the continuing European instability and a US market returning from MLK day still very much fledgling to sprout definitive roots upwards," May noted.

MARKET GAINERS, MOVERS

IG Markets forecast a positive streak for BHP Billiton as it continues reap the gains after having a big day yesterday. "A break above $37.50 for the mining giant could help trigger further gains. The ADRs are suggesting it will open up 1.5% at $37.54. Ahead of the open, we are calling the Aussie market up 0.6% at 4244," IG Markets' Shamu noted.

Market

Price at 8:30am AEST

Change Since Australian Market Close

Percentage Change

AUD/USD

1.0431

0.0030

0.29%

ASX (cash)

4244

26

0.62%

US DOW (cash)

12557

50

0.40%

US S&P (cash)

1307.0

9

0.69%

UK FTSE (cash)

5709

31

0.55%

German DAX (cash)

6339

27

0.43%

Japan 225 (cash)

8578

27

0.32%

Rio Tinto Plc (London)

37.10

0.16

0.43%

BHP Billiton Plc (London)

21.38

0.17

0.80%

BHP Billiton Ltd. ADR (US) (AUD)

37.54

0.54

1.46%

US Light Crude Oil (Feb)

100.88

-0.54

-0.53%

Gold (spot)

1661.0

4

0.24%

Aluminium (London)

2205.00

-23

-1.03%

Copper (London)

8239.00

39

0.48%

Nickel (London)

19495.00

-30

-0.15%

Zinc (London)

2002.00

1

0.05%

RBA Cash Rate to be decreased by 25bp (Feb) (%)

72.00

0

0.00%

IG Markets provides round-the-clock CFD trading on currencies, indices and commodities. The levels quoted in this email are the latest tradeable price for each market. The net change for each market is referenced from the corresponding tradeable level at yesterday's close of the ASX. These levels are specifically tailored for the Australian trader and take into account the 24hr nature of global markets.