Australia: The AUD has started the week in the mid 0.9800's as the USD weakened on Friday night after the release of the Q3 GDP figure of 2%, which was in line with expectations.

This 2% figure which is not enough to make analysts feel there will be any significant decline in unemployment levels in the US in the near term has drawn further attention to the level of quantitative easing that the Federal Reserve may undertake this week.

This week is dominated by announcements by central banks beginning with the RBA who will announce their decision on interest rates this Tuesday afternoon just before the running of the Melbourne Cup.

Most of the market expects there will be no change in the cash rate of 4.50% since last week the CPI figure rose by 0.7% qoq hosing down expectations that the RBA will be forced to raise interest rates to counter inflationary pressures.

We tend to agree there will be no interest rise since RBA credit data for September released on Friday rose only 0.1% as compared to forecasts of 0.3%. Business credit also fell by 0.9% after being down in August as well.

In the US the Fed begins a 2-day meeting on Tuesday after which the market expects some announcements as to the size of the Fed's purchase of US Treasury securities.

In Australia, data releases on retail trade, building approvals, the trade balance and the RBA's quarterly statement on monetary policy are due this week.

Majors: The EUR, GBP and JPY all moved higher against the USD after the release of the US GDP figure.

Their near term path may be influenced by more meetings from central banks in the UK, Eurozone, Japan and India scheduled for this week.

Also PMI data fro China and the US are due this week.

At the end of the week all eyes will focus on the US non-fame payrolls for October, which will be released on our Friday night.

All financial markets could be very volatile this week.

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