Markets opened soft this week, as Geo-Politics dominate the news cycle. The devastatingly fast collapse of the Afghanistan Government to the Taliban, has surprised and shocked most observers around the world and most especially the US lead coalition forces. The collapse has been met with a wall of silence from the US President, who was responsible for the US withdrawal and capitulation, which will have flow on effects across the globe and more especially US allied interests.
Chinese economic numbers disappointed Asian markets, with Retail Sales and Industrial Production both missing expected targets. Japanese GDP and Industrial Production and GDP beat expectations and pushed the Yen up to 109.20, while the EUR fell back to 1.1770. Empire State Manufacturing Index was weaker than expected and the virus remains a threat around the world. In Australia the virus has caused lock-downs across the country, which will damage the economic recovery, while markets await the RBA minutes release today. The AUD slipped back to 0.7320, while the NZD looks to test 0.7000, ahead of the RBNZ rate decision on the morrow.