The US/European trade negotiations appear to be moving in the right direction and calm has settled over the US/China disruptions, allowing markets to continue to progress. Equities rose and bond yields drifted lower, although emerging economic data was not all good news. US ADP Private sector jobs report, was much softer than expected and that does not bode well for the important Non-Farm Payroll number, set to be released Friday. The US Dollar headed south, with the EUR regaining 1.1400, while the GBP held 1.3500.
Australian GDP growth was weaker than forecast for Q1, rising 0.2% and 1.3% annually. This was not unexpected, as it follows a series of weak economic data, including trade numbers. Australian GDP/Capita has been extremely weak for many quarters now, hiding major problems in the economy, as immigration has boosted GDP and camouflages the economic realities. The weaker reserve allowed the NZD to consolidate above 0.6000, while the AUD looks to regain 0.6500.
