Soft Data

Yesterday some soft data reduced the pressure on the RBA to raise rates prior to seeing the CPI figures at the end of October. Building Approvals were down 4.7%, RBA Credit Growth, +0.1% and Rismark House Prices, dropped down 0.2% and revisions now show three months in a row of house price falls. Chances of a rise next week have now dropped to 50:50

Europe:
Overnight, Moody’s downgraded Spain (by one notch to Aa1/Stable) and
Ireland announced that Anglo Irish Bank will need total capital of
EUR34.3bn (up from EUR25bn) and Allied Irish Banks will need a further
EUR3bn injection (up from EUR7.4bn) by year end.