US equity markets posted gains, following news that Trump would speak with Chinese President Xi, in the coming week and a resolution of the recent trade spat, may be at hand. This follows a contraction in the latest Chinese Manufacturing PMI, and weaker than expected economic data from both Countries. US Factory Orders contracted 3.7%, while the Jolts Jobs report was in line with expectations. European inflation fell below the target range of 2%, to 1.9%, green lighting a further rate cuts, this coming Thursday. The EUR slipped back to 1.1370, on the news, while the GBP held above 1.3500.
Australian Current Account deficits are coming under the spotlight, with a string of heavy deficits, suggesting pressure on production and growth. The Australian economy has been beset with weak economic data, and this is being reflected in the weaker than expected currency, with the AUD unable to regain 0.6500, while the NZD struggles to hold 0.6000. Trade remains a key issue, but rumours of a change in the Federal Reserve leadership, may upturn markets.
