Falling oil, positive data and earnings spurred on Wall Street last night. The Fed provided the kicker with a “no change” to rates. The Dow jumped 331 points.
In its statement accompanying the unchanged rate decision, the RBA has given the first sign it can see a policy easing ahead.
The RBA today decided to leave its cash rate at 7.25%.
The July CBA/AiG Performance of Services Index showed a further decline as all sectors are finding the combination of higher interest rates and fuel prices difficult to overcome.
The Dow fell 42 points following big falls in commodity prices including oil, metals and gold.
Australia, the US, Europe and UK all make rate decisions this week. Australia awaits the monthly employment data.
Inflation rose to a 16-year high in July in Europe, and unemployment increased for the first time in three years.
The latest release of the joint TD Securities-Melbourne Institute gauge of inflation has revealed a difference in opinion.
The latest data have impending rate cut written all over them.
Another month, another set of weak building approval figures, another opportunity for economists to argue, erroneously, that Australian house prices and rents should rise.