US markets eased into the week quietly, with celebrations of the Columbus Day holiday, allowing markets to flatline. Oil prices remained elevated, despite the announcement of a deal for Russia to supply diesel to global markets. This was overshadowed by developments in the Middle East, with the Houthis attacking Saudi Arabia and talk of the US, joining the fray. This week will look closely at energy, the impact on inflation, as measured on both sides of the Atlantic. The US Dollar remained bid, with the EUR trading 1.1150, while the GBP tested the downside of 1.3200.
The stronger reserve did little for the performance of commodity currencies, with the NZD surrendering 0.5600, while the AUD traded around 0.6950. Australian markets will be watching the release of the latest RBA minutes, for clues as to further interest rate rises.
