Australia: The Australian Dollar has steadied after last Thursday night's rally over USD0.9900.

Friday night's US Labour report was the big moment.

The headline payroll number was disappointing with unemployment falling 95k in September, which was significantly worse than the 5k decline expected by markets.

Overall, the trend seems to have gone flat with unemployment staying at 9.6% and this report provides more fuel for the Fed to implement Quantitative Easing at its 3 November FOMC meeting.

The AUD had a "Royal Show Roller Coaster" ride on Friday, weakening ahead of the non-farm payrolls and rebounding when the USD was sold after the payrolls data and talks firmed on QE.

We should record RBA Deputy Governor Ric Battelino's speech on Friday regarding the availability of finance in Australia..."I don't think it would be in anybody's interest to return to the free-flowing credit of a few years ago".

If you get a spare minute Have a read of his speech at http://www.rba.gov.au/speeches/2010/spdg-081010.html.

A subdued market today with Japan and the US on holiday, not a bad thing after a tumultuous last two offshore sessions.

The ABS is scheduled to release housing finance data for August on Monday, with median expectation of a 1% rise in home loans this month.

Majors: Friday night started quietly and picked up speed with St Louis Fed President Bullard's comments when he argued that Further QE would be a "tough call".

Someone might have phoned him as he then quickly went on to to suggest this policy action could be taken in the December meeting.

Then, the weak payrolls data strengthened the possibility of an introduction of QE as early as the November FOMC meeting!

This sentiment saw equities and commodities rally hard, the USD sold and commodity currencies (AUD) rally.

The fall in public payrolls was worse than expected as spending cuts deepen to offset declining tax revenues and the pace of job creation in the private sector has slowed.

The G20 meeting was held over the weekend and currency wars were prevalent in the agenda and the old chestnut of "competitive" devaluation being used to gain export advantage.

The US are urging the IMF to play a more active role in monitoring currencies.

G20 leaders also repeated previous calls for China to increase their domestic spending to try and quicken the process of rebalancing the global economy.