ASX is set up opening stronger on Monday with SPI currently up by 25 points trading at 5699. This is on the back of a stronger closes in the US and the on the news that Donald Trump and Xi Jinping has agreed to a 90 day trade war truce. In the US, Dow Jones closed higher at 0.8%, S & P closed up 0.8% & Nasdaq closing 0.8%. In Europe, the markets ended up losing with FTSE closed down 0.8%, CAC down 0.1% & DAX down 0.4%.
AUDUSD open Monday strongly on the back of the truce currently surged to US $73.78 cents with Gold closed lower down 0.1% at US $1222.50. Oil continue to slip with Brent oil closing down 0.8% at US 59.46 a barrel. Iron Ore also closed down 0.8% to US $75.95 a tonne.
Today the focus is likely to be on the reaction to the weekend meeting between US & China. In Australia, RBA is expecting to keep cash rate on holder on Tuesday keeping it at 1.50%. Later this week OPEC will meet to discuss a potential production cut in the wake of the recent plunge in prices. In US, Manufacturing PMI numbers is due out on Tuesday and non-manufacturing PMI due out on Thursday. The Market will be looking for another strong non-farm payroll numbers due out this Friday with market expecting 200,000 created in the month of November .
US equity markets will be closed on Wednesday (Thursday AEDT) for the funeral of former President George H Bush.
Please contact on of our FX specialists today for further information and trading opportunities.
DATA RELEASES THIS WEEK:
USD – ISM ManufacturingPMI
AUD – RBA Rate Statement
GBP – BOE Gov Carney Speaks
AUD – GDP q/q
EUR – ECB President Drahgi Speaks
USD – Fed Chair Powell Testifies, ISM Non-Manufacturing PMI
CAD – BOC Rate Statement & Overnight Rate
USD – Average Hourly Earnings m/m, Non-Farm Employment Change & Unemployment Rate
CAD – Employment Change & Unemploymnt Rate