Fears over the US-China Trade Deal had shaken markets early in the trading day, but US Trade Negotiator Peter Navarro, reassured markets that the agreement remained in place. Navarro touted the implementation of Phase One of the agreement was underway, despite the Chinese lack of candour and responsibility for the Pandemic. The NASDAQ surged to new record highs, boosted by stronger PMI data in Europe, Australia and the USA. The Dollar continued to drift lower, with the EUR rising to 1.1300, while the GBP broke back above 1.2500.
The Australian PMI number came in at 52.6, showing a substantial turnaround, moving into positive territory. The AUD remained static, trading above 0.6900, while the NZD remains below 0.6500, ahead of the RBNZ rate decision. The Central Bank is not expected to adjust rates, but markets will wait for the associated economic commentary and any adjustments to ‘QE’.
The trade exposed commodity currencies remain exposed to any disruption in the supply chain and the current crises facing China and the USA could devolve?