US equity markets tracked lower, with the Moody’s downgrade being digested, along with market sentiment. The US Dollar tread water, with the EUR trading just above 1.1250, while the GBP held 1.3350. Canadian inflation was hotter than expected, coming in at 2.5%, up from 2.2%. The US will not want to see a repeat of this when their next inflation measures are released.Both the RBA and the Bank of China elected to cut rates, to counter any impact from Trump tariffs. The RBA has held back from rate cuts, due to the Federal Election, but proceeded as expected this time. The impact was immediate, with the AUD falling back below 0.6400, while there remains a premium with margins. The NZD Dollar continues to battle to hold 0.5900.
