By Rhys Miles
As alluded to yesterday, in a data bereft week, direction or lack thereof will be driven by any news emanating out of trade discussions between the US and China. Last night a slightly pessimistic tone emerged after reports from one source had the Chinese mood as “pessimistic” after their request for tariff rollbacks before any signed agreement had not been agreed to. It did sound more like a scrambling for subject matter than an issue of real substance. Offshore equities took it in its stride with the Dow finishing flat and European equities performing modestly.
The GBP continues to find support after reports that UK Conservative party candidates have signed a pledge to support Boris Johnson’s Brexit deal if elected. This has supported growing confidence of a “smooth Brexit”.
In what should be a surprise free release of last month’s RBA minutes, little is expected given the availability of the information available prior to today. The AUD continues to underperform trading in the same range of recent weeks and looking weak even around the 0.6800 level. Even yesterday’s Chinese rate cut on their short term interest rates couldn’t generate interest.
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