by Nicholas Cork
A relatively calm 24 hours as Markets consolidated ahead of the weekend, led by US yields finding some support after the recent aggressive sell-off, however, the curve is still distorted. Slightly weaker US Q4 GDP revision keeps it below their target and reinforces the pause on further US rate hikes. AUDUSD has languished within 0.7050/0.7100 overnight as it tries to recover from being hit by the NZD bus.
Trumps US-CHINA trade advisor Kudlow said overnight that they are ready to extend trade negotiations with China for either weeks or months to reach a deal, the US does not want to give up their leverage, and that some tariffs will be kept on. Fed speaker Bullard is due to speak this morning and will be watched closely for any new hints. Japan has a slew of data due today which will also be watched. In Brexit news, Britain was due to leave the EU today lol.
Domestically, the focus should be on the political fallout from the Al Jazeera expose, after Pauline Hanson tried to staunchly defend One Nation’s interaction with the NRMA [sic] and also mentioned One Nation policies are better than Jacinta Ahern [sic]. So not much has changed from the One Nation party it seems, although their preferences will have an impact on the Federal Election.
Chart of the Week – Turkish Lira manipulation sees o/n rates go to 1000% ahead of the election (Reuters)
US Yield Curve – Reuters
© 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.