US equity markets continue to rally to new record highs, supported at long last, by the Fed’s monetary policy. The cut last week and the signal of more to come, have lit a fire under the US share markets. In contrast, the Peoples Bank of China left rates unchanged, cruising along. Markets will be watching today’s PMI data releases from across Asia, Europe and North America. The US Dollar was softer, allowing the EUR to approach 1.1800, while the GBP regained 1.3500.
The softer reserve overnight provided some stability to commodity currencies, with the NZD settling around 0.5850, while the AUD looks to regain 0.6600. The RBA Governor warned Australians that inflation was contained but the elevated price levels, plaguing the economy since COVID, would remain. The RBA will be watching the CPI inflation number, set to be released Wednesday, very closely.
