The Australian stock market opened slightly higher today, led by the overnight US market. Trading volume is thin ahead of the testimony of US Fed Chairman Ben Bernanke in Congress tonight, which could set the direction of the US economy in the near term.

The tight twenty point range on the index is masking a number of underlying themes. Despite general strength in resources, gold stocks are particularly weak, as the gold price continues to languish below the US $1,200 mark.

Large and small financial stocks are generally positive, but medium sized stocks are giving up recent relative gains. Energy leader Woodside is dragging down the sector despite positive moves in the spot oil price overnight.

Stocks perceived as defensives are doing best today, with the consumer discretionary, consumer staples and healthcare sectors all up on the day.

The Aussie dollar rebounded from its recent 2 weeks low against US dollar to trade up to US$0.8740, before pulling back following the release of the minutes from the most recent RBA Board meeting.

Investors and traders are closely examing the statements with a view to the next interst rate move. The Aussie dollar has been largely impacted by the movements of equity market in the late sessions and might continue do so in the coming sessions. The Aussie dollar is likely to maintain a broad trading range between US$0.8740 and US$0.8660 level. A break on either level is like to confirm a clearer trend in the short run.