Australia: The Australian dollar continued to trade in a one cent range overnight between USD1.0415-1.0515; and is currently trading around USD1.0430. The AUD continues to remain firm and with the recent comments by RBA officials that interest rates are unlikely to be cut despite current pricing in the futures market for a rate cut by the end of the year.

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Base metals where firmer overnight helping support the AUD with copper trading to a three week high closing up 1.7%. Nickel was up 0.1%, lead rose 2.3%, while aluminium and zinc finished up 0.1% and 2.3% respectively.

Today locally will see the RBA Governor Glenn Stevens making his appearance before the House of Representatives Standing Committee on Economics. While he is likely to comment on the recent heightened risks to the global economy, he is unlikely to give any insight to the RBA Boards next move.

Majors: As mentioned above European equity markets started the session firmer before seeing a sharp sell off as the German Dax fell 4% in fifteen minutes. Later in the session it did recover some of its losses to finish down 1.7% The selloff came as a raft rumours, one of which that the German government debt would be downgraded, however this was later
dismissed by ratings agencies.

US markets also finished lower despite positive news that Berkshire Hathaway would invest US$5bn in Bank of America. The Dow ended down 1.5% while the S&P and Nasdaq fell 1.6% and 1.9% respectively. Also overnight saw the US Jobless Claims data for the week ending 19th August rise to 417k from 412k slightly worse than expected Tonight will likely see another choppy session with the market waiting for Fed Chairman Bernanke’s speech at the global central bankers conference at Jackson Hole. The market will be keeping a close eye on whether the Fed will indicate any further prospect of a policy stimulus. Also speaking at the conference is the ECB President Trichet, who may provide a financial plan for Europe.

Economic Calendar
AU RBA Governor Steven appears before House of
Reps Economic Committee
JN National CPI JUL
US Bernanke give speech at Jackson Hole Conference