Trade dominated markets in the week gone by, although some positive economic data, came from the US consumer. Retail Sales jumped higher than expected and the University of Michigan Economic Sentiment report was also stronger than expected. The health of the US consumer appears to be on the rise, and this is great news for a consumer economy. The EU are negotiating for a trade deal in Washington and the Trump is apparently calling for 15-20% tariffs on all imports, while default would be 30%! This is not good news for the EU, as they are quickly running out of runway, with the deadline of Augst 1st fast approaching. The US Dollar was softer to close out the week, with the EUR regaining 1.1600, while the GBP trades around 1.3400.
The weaker reserve was welcome news for the commodity currencies, with the AUD looking to regain 0.6500, while the NZD consolidates above 0.5900. The ASX hit record highs Friday, with the recent weak Unemployment data, pointing to further rate cuts from the RBA. This coming week will again focus on US trade negotiations.
