US equity markets drifted, as the US markets fear a ‘Government Shutdown’, over the US budget impasse. Congress cannot agree on the budget, as the Senate refuses to buckle, to President Trump’s wishes. The Congressional leaders will meet again to discuss possible solutions and compromise. A shutdown would close the Labour Department and prevent the release of the important Non-Farm payroll number. UK Q2 GDP growth increased more than expected, jumping to 0.3%, but remains one of the few positives coming from a depressed UK economy. The GBP remained positive on the news, rising to 1.3450, while the EUR traded 1.1750.
The RBA left rates unchanged, as expected, in the light of resurgent inflation, plaguing the economy. This lent some support to the AUD, which jumped back above 0.6600, while the NZD looks to regain 0.5800. Inflation is also resurgent again in Europe, with sharp rises in the Germany and Italy, confirmed in the latest data.
