The weakness of the US Dollar remains the centre theme surrounding markets, allowing further gains in the EUR and the GBP. The EUR topped 1.1300, while the GBP broke back above 1.3400. The US Dollar weakness is a result of concerns surrounding the US economy and US growth. Moody’s downgraded the US credit rating and economic data has been weak.The RBA rate cut hammered the AUD, which crashed below 0.6400, following the 25-basis point rate cut on Tuesday. The overall weakness in the reserve currency has allowed a recovery in the AUD, jumping back above 0.6450. The NZD has consolidated above 0.5900, ahead of the budget, but these are no longer market movers.
