The market rally was moving on as confidence slowly creeps back. Trade deals with India and Japan appear to be on the near horizon, according to Treasury Secretary Bessent, although the all-important Chinese trade deal, was noticeably not confirmed or discussed. Markets are calming and confidence is slowly returning, although certainty is a necessary commodity. Economic data continues to underperform, with the Dallas Fed Manufacturing Index weaker, while the Jolts Jobs Report was slightly softer than expected. The US Dollar slides to long-term lows, with the EUR trading around 1.1400, while the GBP holds 1.3400.
Commodity currencies surrendered some of the recent gains, with the AUD falling back to 0.6350, while the NZD dropped below 0.5950. Markets are expectant and nervous, awaiting key growth and inflation data, from both Europe and the USA. Local markets are looking closely at the Australian inflation number, ahead of the big Federal Election, this coming week.
