The slow trading week in the US continues, as Thanksgiving week is a time of travel for many, and thus markets usually remain contained. The Fed Minutes are set to be released which may confirm the ‘higher for longer’ mantra, but markets are already past that and anticipating future rate cuts. US Existing Home Sales plunged a further 4.1%, 14% year on year, heavily impacted by the high level of interest rates. The US Dollar remained soft, with the EUR trading above 1.0900, while the GBP holds above 1.2500.
The RBA minutes confirmed the Melbourne Cup Day rise, was recognition that inflation remains a threat and is persistent. The Bank also confirmed there may be another couple of rate rises to come. This gave support to the AUD, which rallied above 0.6550, while the NZD surged through 0.6000. Trading is likely to remain constrained in this US Holiday week.