Currency Update: With no news locally yesterday, the AUD drifted lower towards USD 0.8930 but by the European session was slowly gaining some momentum back...

Currency Update: With no news locally yesterday, the AUD drifted lower towards USD 0.8930 but by the European session was slowly gaining some momentum back towards USD 0.8990. Higher Gold prices and a rise in US equities overnight saw the AUD outperform against most of the major currencies, hitting a high of USD 0.9049. With no major data releases due we expect the AUD to hold onto its overnight gains but is likely to trade within a narrow range. Global equity markets made solid gains overnight with US indices up 1.1%, while European markets averaged a 0.6% gain. Spot gold rose 1.1% to USD1,338.4 per ounce, closing in on a four month high. European Data was also positive with German business confidence improving by more than expected in February. Most major currencies outperformed the USD, the EUR regained some lost ground rising from a low of 1.3709 to around 1.3740.