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US Dollar weakens

The RBA have cut rates by 400 Basis points in 6 months. However this cut was seen as positive in the market despite being at is weakest for many years, which was backed up by the AUD$42bn stimulus package the government announced.  The AUD rose 3.4% against the US dollar and 3.3% against the Yen.

The USD dollar weakened yesterday due to another volatile day in the markets despite Pending Home Sales coming in better at 6.3% vs. -3.7%.   The USD lost 1.5% against the Euro and 1.4% against the Pound.  Due out today is ADP Private Employment Report and ISM non-manufacturing.

The Euro strengthened as European shares improved by 2% with risk appetite improving.  However data in the form of December PPI and German Retail Sales came in worse than expected. Due out today is Eurozone Retail Sales.

Sterling fell in the Asia markets but rallied against the US dollar. There is no data due out from the UK today.