US Equities stormed back overnight, not because of any key economic data trigger, but as a rebound from the recent unravelling of risk appetite. This is only a breather for the volatility that will continue across global markets. US Existing Home Sales continued to crash, contracting a further 3.4% in May. Surging inflation and interest rates have put Western economies into a recessionary position, from which there is no easy way out. The EUR pushed back to 1.0530, while the Yen hit 24 year lows once again, trading 136.50.
The RBA minutes revealed a commitment by the Board to fight surging inflation with 25 basis point rises, as necessary. The reality and urgency of the situation may encourage a little more aggressive monetary action than this, in the next meeting. NZ Consumer Confidence collapsed to 78.7, in the Westpac survey, which is the lowest since the survey began in 1988. This did not assist the currency, which fell back to 0.6320, despite a softer reserve currency. The RBA minutes did little to rally market confidence, with the AUD barely holding above 0.6950, as economic data deterioration will confirm the dire situation.