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US Fed minutes offer no surprises

Published February 20, 2020

Author Rhys Miles

US Fed minutes released early this morning revealed no surprises with the Fed stating they remained comfortable with the “appropriate” policy outlook and the US economy was well placed with moderate growth, a tight labour market and low inflation. Coronavirus of course remains a watch and act scenario. The USD hit a three year high against a basket of other currencies and the Yen declined due to a reversal of safe haven buying. That said the AUD still looks weak, now becoming a little too comfortable in the mid .6600 level.

China announced overnight it will cut its benchmark lending rate and also announced that the number of new coronavirus cases had dropped for the second straight day. This gave offshore equities a boost with the Dow finishing up 0.40% to new highs. Apple reversed the previous day’s virus driven losses.

US data overnight continued the strengthening economy trend with US Producer prices higher than expected and US building permits surging 9.20% in January. Locally we have the Australian jobs number which has the potential to give the Aussie dollar a slight boost if at all.

 

 

Adam Nikitins and Stewart McCallum were appointed Joint and Several Voluntary Administrators of EncoreFX (Australia) Pty Ltd on 30 March 2020.

Rees Logan, Adam Nikitins and Stewart McCallum were appointed Joint and Several Voluntary Administrators of EncoreFX (NZ) Limited on 30 March 2020.

Any queries regarding the Administrations should be directed to encorefx@au.ey.com.