Melbourne -

European equities kick off the week on a positive note with a little help from ECB president Jean-Claude Tichet who stated the ECB is "confident" Greek economic woes will subside, with the economy likely to cut its deficit below the limit of 3 percent of gross domestic product in 2012 from 12.7 percent. Economic feedback from European showed the Sentix investor confidence report failed to meet expectations, falling to January from -3.7 in December. Market forecasts had called for an improvement to -2.3.

Stronger equity market activity assisted the sterling and Euro to regain composure, albeit for a short while. Despite European markets scrapping together some moderate optimism, market sentiment remained sensitive which become apparent when the US opened for business. Despite US equity markets losing solid ground overnight this hasn't translated to any clear direction for the greenback with the usual risk-adverse flock to the low yielding heavy weights not eventuating. The US dollar index which measures the dollar's value relative to six major foreign currencies is currently down 0.11 per cent to 80.36 but appears to be on an upward trajectory leading into domestic trade.

Local economic indicators today include this morning National Australia Bank Business Survey; however we expect equity market activity will be the key barometer for the direction of the Aussie dollar. At the time of writing the Aussie is buying near day lows at 86.2 US Cents.