US Weakness

University of Michigan's consumer sentiment index, dropped Friday by almost 10 points - far steeper than forecast - to 66.5 in July, its lowest reading since August 2009. This, along with weak earnings has continued to cast some doubt on the US recovery. In Australia this will take some pressure away from the need to tighten with wholesale rates continuing to dropping down as the market settles in to a prolonged pause by the RBA