US Markets continued to rally, with equities tested record highs and bond yields tumbling. Market confidence is high, with the Federal Reserve expected to cut rates overnight and once again before Christmas. The Trump tour of Asia is calming any global trade tensions and markets are loving it. The micro-economic problems are being brushed aside and the US Government shutdown, largely ignored. The longer the shutdown continues the more people realise how important the Government is. The EUR traded around 1.1650, while the GBP continue to suffer, falling to 1.3230.
Australian inflation spiked for the September quarter, jumping well above the target range, to 3.2%. This is a worrying sign, especially considering the weak economic situation, the economy is in. Australia experienced further price pressures in house prices, rates and electricity. These were already at painfully high levels and only add to the suffering of the average citizen, in terms of cost-of-living . This will probably ensure the RBA holds rates, at their next meeting, cutting upward moves on the Australian stock market. This did boost the AUD, which surged through 0.6600, while the NZD took on 0.5800.
