The Fed Minutes were released overnight and they pointed to easing on the way, with reservations over the effect of the Administrations trade/tariff policy. Trump issued a 50% tariff on copper products and threatened a 200% tariff on pharmaceutical imports. The markets largely brushed off the everchanging trade threats and returned back to positive territory, on the equity markets. The US Dollar was steady, with the EUR holding 1.1700, while the GBP looks to regain 1.3600.The RBNZ followed the lead of the RBA and left rates unchanged. This is more a ‘wait-and-see policy’ than a ‘job-done’, as the NZ economy remains on struggle street. The NZ Central Bank inaction did little for the currency, which remains below 0.6000, while the AUD consolidates above 0.6500. Markets appear to have moved on from Trump trade theatrics, but further substantial action, may well be see a re-ignition.
