Markets opened the week quietly, but is anticipating some big economic data releases coming, over the next few days. US inflation will be the focus, early in the week, which is expected to remain subdued. Any scare, to the upside, would vindicate the Fed’s apprehension with rate cuts. The other big market question today, is the US/China 3-month trade truce, which expires today. Will this be extended or perhaps formalised? The US Dollar was steady, with the EUR trading around 1,1650, while the GBP drifted to 1.3430.The RBA will likely cut rates a further 25 basis points today, when they meet, after holding at the last meeting due to trade/tariff concerns. Trump let the Australians slide, with a minimal 10% tariff, which should alleviate any concerns over major trade disruptions. The AUD holds above 0.6500 but may come under pressure if the RBA surprise markets, while the NZD slipped back towards 0.5900.
