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No deadline for trade talk conclusion

Published March 29, 2019

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