Australia: The AUD has opened weaker this morning continuing on from yesterdays sell off following the release of the CPI data.

The Australian headline CPI reported a rise of 0.7% in Q3 taking it to 2.8% year on year and has seen the market pair back its expectations for a RBA rate hike at its November Board Meeting.

The market now has a rate hike possibility at just 15% and the scale back saw the AUD fall from 0.9860 from yesterday morning.

Commodities traded lower with copper down 2.5%, nickel down 2.1% and gold down $16.00 to US$1322.00 per ounce on the back of a stronger US Dollar.

There is no local data due for release today and the AUD will likely be driven by offshore events, with equities set to open weaker
the AUD is likely to be range bound ahead of Asian trading.

Later this afternoon will see the Bank of Japan announce its policy decision though nothing is expected to change.

Majors: The USD rallied during the European session as equities where sold off following rumours that the Federal Reserve is likely to announce purchases of "only" a few hundred billion dollars of US Treasuries at next weeks meeting.

The concern over the Treasury purchases is that it will not be enough to support a US recovery and it seems too much is being expected.

Some good new was released in the US overnight saw the US new home sales report a rise of 6.6% in September following the 1.1% rise in August, while the US mortgage applications rose 3.2% last week after a 10.5% fall the previous week.

Also overnight saw the US durable goods orders rise 3.3% for September much better than the expected rise of 2.2%.

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