The US extended the interim US/China trade agreement, for another 90 days, surging market sentiment and further confidence in global trade. US markets also rallied strongly on the latest CPI reading, confirming inflation is under control, ensuring probable rate cuts from the Federal Reserve. Inflation was expected to rise to 2.8%, but held steady at 2.7%, as statistics become more believable. The US Dollar was softer, allowing the EUR to rise above 1.1650, while the GBP looks to regain 1.3500.
The RBA cut rates by 25 basis points, as expected, citing contained inflation and a settled global trade environment. Australian growth prospects were reviewed lower, as productivity tanks and the economy struggles. Easing monetary conditions is seen as essential. The AUD managed to consolidate above 0.6500, while the NZD was pushing back towards 0.5950.
