US equity markets rebounded and the US Dollar and bond yields eased, following the release of the softer than expected PPI inflation reading. The wholesale inflation reading in the US was slightly softer than expected, coming in at 3.3%, allowing hopes of a softer CPI number, set to be released later tonight. There are big inflation readings due out across Europe and the US, coming tonight, and also a big GDP growth reading out in Germany. German growth is expected to confirm an extended and deep recession painstakingly continues. The softer US Dollar allowed the EUR to rebound to 1.0279, while the GBP flailed around 1.2150.The weaker reserve allowed a rebound in the commodity currencies, with the AUD pushing back over 0.6150, while the NZD looked to regain 0.5600. Currency markets will be dependent on the inflation reading in Europe and the US, but local markets will be watching the NZ Business Confidence number, set to be released today.
