Markets eased overnight, following the surge in confidence, triggered by the 90-Day Trade Agreement between China and the USA. The temporary agreement alleviates many market fears over the disruption to global trade. The focus then turned to US CPI inflation data, released overnight, which was benign. This was a further boost to market sentiment. The USD softened, allowing the EUR to regain 1.1150, while GBP recovered to trade 1.3250.
Commodity currencies are enjoying the return of confidence to global trade, as trade exposed economies and currencies, are beneficiaries of this. The AUD rallied to 0.6450, while the KIWI regained 0.5900. Attention remains focused on global trade wars, while GDP growth in Europe and inflation remain key measures.
