The Australian dollar continued its slow decent after the close of our domestic session with a range of manufacturing and services PMI form Europe plus the earlier Chines Manufacturing PMI data helping see it fall to 1.027 USD.  The Euro also struggled through its main session as German, French and European PMI's all were at or below expectations and except for German Flash Services PMI were a contractionary number.   As expected European indices all slide lower with the data mixed with increased political uncertainty from the French Presidential race and the Dutch Prime offering his resignation in response to plans for further austerity measures there being unable to be agreed in his minority coalition government.

Weakness from the European session bled into the US session with both the Dow Jones and S&P500 sheading 0.78% and 0.84% respectively.  Although both indices did claw back some of the losses and were matched with risk currencies late in the US session.  The Aussie pared back to 1.031 USD and Gold recouped 90% of what it has lost earlier in the night to be trading at 1637.60 USD an ounce a short time ago.

Today's session will of course be focused on the 11.30am CPI print after RBA Governor's check mark statement for a rate cut next month.  The downside prevails with this print with expectations dropping for the CPI headline and weighted numbers in the wake of yesterday surprise PPI contraction.  The Australian dollar sits flat in the wake of the close of the US session at 1.0313 USD.