US equity markets drifted lower, as did the US Dollar, as analysts await the impending announcements of trade deals with the US. Promises of looming trade deals have led to high expectations and a failure to deliver, could cause instability on global markets. US economic data has been steady and now the other ‘ball in the air’ is the latest Fed interest rate decision. Trump has called for rate cuts, but Fed Chairman Powell has been steadfast on his independence, leading to low expectations from markets. The US Dollar slipped back, with the EUR trading 1.1350, while the GBP rallied to 1.3370.The market open in Australia was static, greeting the news of a re-elected Labor Government, neutrally. The latest Australian inflation gauge reading was higher than expected, which may deter the RBA from cutting rates, but will probably not. The AUD pushed back up towards 0.6500, while the NZD is looking to regain 0.6000. All eyes are on the global trade wars and the FOMC.
