Author: Rhys Miles
A solid rebound in equities last night and a moderate “risk on” appetite did nothing for the Aussie dollar last night. Whilst the Dow and European equities enjoyed a solid rebound the AUD is a victim of a perfect storm of political uncertainty and a foregone conclusion that interest rates will be cut at least twice by the end of the year. The catalyst for the equities rebound was an assurance from Trump that he will secure a trade deal with China. As hollow as this may prove to be, the market embraced it with the USD surging again.
Wages data this morning takes on even greater significance with wages and employment having being declared the stated focus of the RBA’s determination on interest rate movements. Oil prices have climbed after a disruption to Saudi Arabia’s main cross country pipeline with Trump’s comments also proving supportive.
Elsewhere, Germany’s investor confidence in their growth outlook surprisingly weakened in May. This has been attributed to global trade tensions and an overall slowing of Eurozone Industrial Production.
© Copyright - EncoreFX, 2018.EncoreFX (Australia) Pty Ltd ABN 42 607 244 879 AFSL 479 870 is the issuer of the financial products in Australia. The information on this website has been prepared without taking into account your objectives, financial situation or needs and so before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. You should obtain the product disclosure statement (PDS) for the relevant product and consider the PDS before making any decision to acquire the product. The information on this website is not directed at residents of any country other than Australia and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of, and comply with, any local law or regulation to which they are subject.