by Nicholas Cork
|Perhaps a glimpse of post mid-term America overnight as Trump appeared emboldened by the election results as he then went on to aggressively confront a CNN reporter before having his white house pass revoked, sacked his Attorney Journal and replaced with one that seems anti-Mueller probe, and threatened to investigate the Democrats if they investigate him.
AUD has had a stellar run this month rising 3% to test 73 cents before easing post FOMC meeting as they left US rate on hold, and is back near 0.7250 to start the day. RBA Statement on Monetary Policy is due today and will once again be examined closely for any future guidance. The RBNZ left their rates on hold but have removed from their statement that the next move could be ‘up or down’ , however the Governor later said if GDP was soft a cut could be considered….
Chinese trade data showed a an acceleration of exports for the 2nd month running as they race the clock to beat the tariffs, and Xi has said ahead of the G20 that attention should be paid to “the increase in negative voices related to China in the United States,” without elaborating any further. Chinese CPI due today.
Oil eased 2% overnight as the global crude supply appears to be increasing faster than expected, no doubt assisted by the watering down of the Iran sanctions and some talk that Saudi Arabia is studying the possible effects on oil markets of a breakup of OPEC.
As the mid-term noise subsides, talk of Brexit concerns and the Italian budget vs the EU conflict come back to the fore, and will be used to keep a check on an unimpeded AUD ascent. The US-CHN Trade dispute also still exists and seems no real progress until they actually meet at the G20 at the end of Nov.
Finally, Australian Federal politics really should be in the spotlight after ex PM Turnbull laid bare the names of the plotters against him and called for a response and for them to be adults……. I won’t mentions state politics (NSW Labor) ..
Have a nice weekend
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