Despite the Goldman Sachs fiasco still in play, US equity markets were able to pare losses from Friday's session with strong company earning's and positive economic news tempering investor fears. Friday's trade saw Goldman Sachs formerly charged with Fraud.  Goldman Sachs and a client Paulson & Co co-ordinated the sale Mortgage backed securities, which Paulson in turn went on to short in the form of buying CDO's after hand picking the securities that made up the investment vehicle. Goldman Sachs will now contest the case brought by the SEC stating the charge is completely unfounded in law and fact. 

US economic news saw Leading Indicators grow 1.4 percent in March against a previous 0.1 percent rise. Economists had estimated a more moderate rise of 1 percent. Higher yielding currencies were able to regain composure after the recent lull in confidence which saw the Aussie dollar return above 92 US cents after falling to lows of 91.5 US Cents in yesterday's trade.

Locally we expect the RBA minutes for the April to govern local currency movements, with interest rate conjecture the primary catalyst. Money markets are now factoring around a 35 percent chance of a rate hike in May.

RBA governor Glenn Stephens has stressed the importance of interest rates to return to neutral levels given growth likely to be around trend and inflation close to target with high house prices to be a prime concern making it necessary for interest rates to return to normal levels, deemed to be around the 4.75 - 5 percent range. However recent dovish comments by RBA assistant governor Guy Debelle, which the market perceived as a possible indication interest rates are closer to 'normal' levels than first thought. At the time of writing the Aussie is buying 92.6 US Cents.