Interesting few days for the Aussie dollar - We have seen a weakened dollar. The main reasons for this are continuing concerns over European debt fears, the Greek crises and overall global slowdown.

The interest rate was held at 4.75% but the accompanying statement left the door open for future rate cuts by the reserve bank. Aussie dropped against the US dollar and the Pound climbed to above 1.63.

The Ozzie dollar is a commodity currency and is therefore very sensitive to the slightest hint of a downturn in the world economy or the new Asia colonial power{China] doing anything economically untoward[ie property bubble totally bursting etc]

The Oz dollar has moved 15% against the greenback, but 7% against the pound.

And that's with the story of the year being the trouble in Europe.

In essence the markets are saying "no matter where the next downturn originates, China is going to cop it, and Australia is going to follow them down". They also seem to be thinking that the US dollar is something of a safe haven - no idea why, maybe they think the teabaggers will die away...

Australia escaping the GFC last time was mainly luck, but the expectation is that next time the luck will be all bad - and nobody here seems to have a clue what's coming round the corner.

Fortunately it's now looking less likely that BOE will be announcing QE this week - ! Blooming hope so .

Fingers crossed indeed!!! If the Bank of England were to announce QE on Thursday the Pound would drop away quite significantly from these current good levels. As UK manufacturing data came in better than expected yesterday its less likely but lets not rule out some more money printing in November.

No such luck! I was expecting it next month, but not today!

More QE in the UK announced this afternoon. A further £75 Billion will be pumped into the UK economy to help protect against the coming global downturn.

The Bank of England Monetary policy Committee confirmed today. The Pound was trading at a low of 1.57 against the Aussie. Its regaining slightly but not a good day for Sterling at all.

Expected to drop further as downgrades of Italy and Spain by the Fitch agency renewed concerns about Europe's debt crisis and the fallout it could have on banks.

Looking ahead to this week, UK unemployment figures will be released on Wednesday.

Depending on the figures released, this could have an impact on the strength of sterling. Economists are predicting that unemployment (in Britain) is set to rise to its highest level for 17 years.

Oh deep joy! This just gets better and better!!

THE Australian dollar was slightly higher today after ratings agency Standard and Poor's cutting its credit rating for Spain.