A cautious start to the trading week, as markets look forward to US Labour Market data and fears of a government shutdown in the US grow. The US labour market will be under consideration all week, with a series of data drops, culminating in the all-important Non-Farm Payroll number. The impasse in the US, over the budget, is coming to a head. Congressional leaders will meet with President Trump, in the Whitehouse, to see if an agreement can be reached. The US Dollar softened, with the EUR rising to 1.1730, while the GBP pushed back to 1.3440.
The softer reserve allowed for gains in the commodity currencies, with the NZD heading back towards 0.5800, while the AUD consolidates above 0.6550. The RBA interest rate decision will be released today, and is expected to hold, due to growing inflationary pressures. Rising inflationary pressures are manifesting in both Europe and Japan. The Bank of Japan noted an interest rate rise may be on its way, while European CPI readings, are heating up.
