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Market awaits Trump address

Published January 9, 2019

Good Morning,

AUD has another evening of consolidation between 0.7100 and 0.7150, coming under some initial selling pressure in early NY as leveraged funds were reportedly selling both AUD and NZD as they feel the rally has run it’s course. The selling was short-lived and was in tandem with the DOW being under pressure in early trade, however both have recovered well and the AUD is back pressuring 0.7150 resistance again to start our day.  US trade talks reportedly went well and have now been extended into Wednesday which has lifted sentiment and in-turn buoyed US equities, treasury yields and the USD against the YEN, CHF and EUR. Traders will likely wait now for the televised address from Trump scheduled for our mid-afternoon for some further direction (possibly).

Locally we have the Building Approvals release today and like the Trade Balance data yesterday…. it’s erratic, so do not get too concerned about the noise around an unexpected number. Note the trade data figures are still trending reasonably well as per the chart below.

Trade Balance history