Asian equity markets headed south overnight, with notable individual exceptions, those being trading nations with trade agreements with the USA. Indonesian markets rallied, following confirmation, of the US deal. European markets sagged under the pressure of trade negotiations, which are frantically going on in Washington, hoping to avoid 30% default tariffs. US PPI was lower than expected, easing some of the pressure, following the latest elevated inflation data. The US Dollar eased, and the EUR regained 1.1600, while the GBP pushed back above 1.3400.The softer reserve allowed the flagging commodity currencies to stabilise, with the AUD holding above 0.6500, while the NZD bounced off 0.5900. These trade dependent nations are desperate to negotiate a deal with the US, but are finding it difficult, to even secure a meeting. Locally markets will look closely at Australian Employment data and Japanese Trade.
