Author: Steve Oram
The AUD took a breather and opened at yesterdays levels, though Trade issues continue to weigh on any recovery through 0.6900.
Trade tensions rose on reports the US is now considering sanctions on another Chinese surveillance company Hikvision. The move follows the US Commerce Department blocking Huawei from buying US goods last week which is now on hold until 19th August.
US Monetary Policy on Hold
Minutes from the Federal Reserve’s latest policy meeting released this morning showed officials agree that their patient approach to interest-rate change would be appropriate “for some time”, with many siding with Chair Jerome Powell’s view that the recent dip in inflation was likely transitory. Powell expects the US economy to continue to grow at a slower but solid pace throughout 2019 with US labour market strong and unemployment near historic lows, while inflation remains near the Feds 2% target. The announcement had little impact on markets.
Pressure Mounts on UK PM May to Resign
The sterling extended losses as British Prime Minister Theresa May is once again staring into the abyss of yet another Brexit deal failure as Parliament seems likely to reject any amendments proposed, with pressure piling for her to quit. Several lawmakers who previously supported May have said they will not vote to back the new plan, particularly in regards to a possible second referendum.
Data out today is the Australian PMI’s at 11am followed by the Japanese manufacturing PMI at 12.30pm. Tonight, we see the release of the ECB minutes of its April monetary policy and US jobless claims.
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