Equity markets took profit, following the big gains booked Friday, triggered by admissions from Fed Chair Powell that rate cuts were due. Powell has resisted unprecedented pressure from the Trump administration to avoid rate cuts, but markets and data are calling the tune. Rate cuts will ease the pressure on US markets and stimulate an already warm economy. This week US GDP growth should confirm this. The US Dollar rallied, forcing the EUR back to 1.1650, while the GBP surrendered 1.3500.The stronger reserve ensured the AUD did not regain 0.6500, while the NZD was steady around 0.5850. Local markets will keenly await the RBA minutes today, ahead of key inflation data, set to be released tomorrow.
