Yesterday’s session was enriched with the fine touch of the bear. Moody’s downgrades and reports that Spain’s gap between spending and taxes could be as high as 7.3% of GDP. Weak US earnings assisted the bears’ pressure on EUR/USD, shoving the pair from 1.3074 to 1.2951. Strong CPI data from Australia and a slight improvement from China’s manufacturing sector helped AUD/USD to regain its lost territory on the intrday charts but for some odd reason I am not favouring further gains in the Australian dollar. The CPI came well-above expectations, which in a way chips the probability of an additional rate cut by the RBA in November, but do note below 50.0 reading in the manufacturing PMI means that the sector is continuing to contract but a slower pace. That should leave AUD vulnerable to the European crisis, in this case Greece.
Greece Fiscal Measures Disagreements
Greek leaders continue to disagree on structural reforms, delaying the talks with the Troika. There appears to be disagreements amongst the Greek coalition leaders on the
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