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Brexit Deadline Nears

Published October 23, 2019

Author : Brett Gordon

The AUD  has gone back and forth during the trading session on Tuesday.That being said the market has also favoured the downtrend due to massive amounts of negativity around the world, including the US/China trade situation, which of course the Australian dollar will be very sensitive to, as Australia is a major supplier of commodities for the mainland China factories.Add to that the financial markets in Australia continue to indicate that the Reserve Bank of Australia (RBA) will pass on a rate cut in November and probably cut to 50 basis points early next year. Meanwhile, the Reserve Bank of New Zealand (RBNZ) is expected to trim rates by 25-basis points next month.

President Donald Trump said in Washington that work towards ending the US-China dispute was going well and they will likely to seal the mini deal which he announced earlier this month.

Markets welcomed news that MPs support British Prime Minster Boris Johnsons’s deal by a vote of 399 to 299. The pound has since weakened after British lawmakers rejected the move to fast track passing legislation through parliament by the end of the month. MPs said they need more time to consider any amendments and the deal.  Johnson has said it is now up to the EU to decide whether it wanted to delay Brexit and for how long.