European data overnight saw the ZEW Indicator of Economic Sentiment suggests the economic outlook for the Euro-Zone is still shaky, with the index declining 2.7 points for the month of October to 56.9 points. The consensus was for a rise to 58.8 points. The ZEW indicator also suggested a lull in confidence in economic outlook in Germany, with the index registering at 56.0 points for the month of October, down 1.7 points from July. The consensus was for a rise to 61.3 points.
The French Consumer Price Index also failed to meet expectations slumping to the annual rate of -0.4 percent, against consensus of -0.2 percent.
The sterling initially lost ground overnight as Consumer Price index registered no change for the month of September. This takes the inflation rate to just 1.1 percent for the year, down from expectation for a reading of 1.3 percent. The Retail Price inflation gauge also showed no change registering at 215.3 for September. Despite the less than convincing European and UK figures overnight, US Dollar weakness prevailed with the currency down against major counterparts.
The US Dollar remained pressured overnight as Gold continued to shoot for the stars reaching all time highs of 1068.60 an ounce; the natural knock-on saw Crude oil which hit highs of US$74.55 a barrel, the highest in since late August. The latest burst of energy from the commodity markets is a testament to higher demand, as investor's hedge against inflation and hunt for alternative investments.
It was a big night for the Aussie dollar which climbed to highs of US$.9126 for the first time since August 2008. After a brief lull, the Aussie appears to be back in form flirting with US$.9100 once again. We expect the Westpac Consumer confidence figures to reasonably bullish for Aussie movements in early trade, notably these figures will reflect consumer confidence post RBA rate hike.