Yes, the Reserve Bank reckons the outlook for the Australian economy has improved since late last year – something we have already remarked upon given the better data flow in the past two to three weeks.

Another big week in Australia ahead to be dominated by the jobs report for January, and the first major week of December half and full year reporting companies, led by the Commonwealth Bank, Telstra and Rio Tinto.

For a week that started so terribly with that huge fall on Monday (and a couple of more days in Australia), last week ended on a surprisingly upbeat note, especially in the US.

More evidence yesterday that the economy is doing better than many analysts and consumers think it is.

Don’t take the rise in the value of the Aussie dollar in the past day or so as anything more than a market-driven correction as a bunch of smarty pants speculators trying to save their bets against the currency in the face of Tuesday’s major change in policy from the Reserve Bank.

Told you Monday morning, that there would be no more interest rate cuts from the Reserve Bank and that not only would rates remain steady for some time, that the next move would be up – whenever.

If anything, the sharp falls on US and European markets overnight shows us how weak confidence is in the immediate direction for shares.

Well, that was a month to forget, red ink everywhere in equities (especially emerging markets) and commodities (gold did OK, but not brilliantly), but not in bonds.

Don’t expect any rate cut from the Reserve Bank after tomorrow’s first board meeting for 2014, and probably for the rest of the year.

The Reserve Bank’s deliberations and new economic forecasts dominate the week here, along with some important economic data and the December reporting season which moves into a higher gear.

There’s a glimmer of hope for the goldbugs – the tight rules on imports of the metal into India might be about to change from march onwards.

And across the Tasman this morning, the Reserve Bank of NZ kept its key interest rate steady on 2.5%, but left a big hint that a rise is very close.

Predictably US markets didn’t like the news that the Fed sees the American economy continuing to improve to the point where it was able to cut another $US10 billion from its quantitative easing program.

After all the moaning and groaning from various parts of business (large and small) over Christmas and the New Year, it was a surprise to see that the National Australia Bank’s first business survey of the year has revealed a sharp improvement in business conditions.

Global iron ore prices continue to ease and seem to be drifting towards the $US120 a tonne mark as fears about the health of emerging economies (which make up six of the world’s top 10 steel producers) and especially the Chinese economy, grow among investors.