European markets nosedived overnight, triggered by the potential collapse, of yet another French Government. The minority Government has put the Budget up for a confidence vote, on September 8th (which is likely to fail), bringing down the Government. This was enough to poison European markets, while US markets were flat, preoccupied with the sacking of a Federal Reserve Board member, by POTUS. The USD remained steady, with the EUR trading below 1.1650, while the GBP drifted to 1.3470.
Commodity currencies remained steady, with the AUD attempting to regain 0.6500, while the NZD hit 0.5850. The RBA minutes revealed further rate cuts were likely, this year, thus markets will be watching today's inflation release closely.
