Australia: Another night in the currency markets and another post GFC high for the Australian Dollar. The US Dollar weakened after the FOMC statement signalled a move to Quantitative Easing "QE".

There was "no change" in monetary policy in the States with rates on hold for an extended period.

It really does seem the US is focused on a lower USD as part of their strategy to recover from the affects of the GFC and their fragile economy and labour situation.

The Fed indicated it was "prepared to provide additional accommodation, if needed, to support the economic recovery and return inflation, over time, to levels consistent with its mandate".

The lowest core inflation rate since the 1960's at 0.9% is a concern for the Fed and while markets were disappointed at not seeing any new measure, they were encouraged by the Fed's statement.

We should mention yesterday's RBA Board Minutes from September which further explained the contrast in conditions in the US and Australia, with the RBA setting the stage and scene for a new rise in interest rates, possibly (probably) in October.

Importers will seemingly take advantage of the rally in the AUD while exporters are dealing with levels most felt wouldn't be seen for quite some time, especially given the sluggish conditions felt in the first half of 2010.

Today in Australia we have July's Westpac Leading Index, NZ's Q2 Current Account, US July Housing Prices and UK Bank of England Minutes from 9 September.

Majors: The US Dollar got "belted" with the significant move, by the FOMC, towards Quantitative Easing which is their technical term for Printing Money.

This has been on the cards for some time and is now being revealed as their "go to" policy answer to the economic situation the US are in.

There will more talk about needing to get inflation higher over the next few weeks and gold rose dramatically, US rates fell and stocks jumped. Oh what a night. It just gets more intriguing, and volatility remains an ever-present companion.