The dollar is stronger again on Tuesday as it continues to benefit from poor news flow abroad and also on concerns that the latest round of US/China talks may not yield a deal between the two before the March 1st deadline although the White House senior counsellor Kellyanne Conway said Trump may still meet Chinese President Xi Jinping in the near future. Having tripped stops at the week’s open against the Chf Franc, before an immediate reversal, the dollar is again building strength against all the majors, and is looking good for further gains although it has reached some important technical targets and may need a degree of consolidation after 8 consecutive days of strength (DXY:97.07). Sterling weakened after data showed that Britain’s economy, Q4 GDP, last year grew at its slowest since 2012, with Brexit uncertainty hitting investment and with the slowdown accelerating at the end of 2018
In other markets, the metals are down around are down around 0.7% on the back of the firmer dollar, while WTI is about 0.4% lower, although it was down almost 2% at one stage after news of the closure of a crude processing unit at an Illinois refinery, which intensified concerns that US crude stockpiles could build as gasoline works slowed. The stock indices are mixed and have generally ended flat on the session.
Tuesday will be rather thin in terms of data and will be dominated by speeches from some important central bankers, including the Buba’s Weidmann, BOE’s Carney and the Fed’s Powell. Ahead of that, NZ kicks off with the Electronic Card Retail Sales, to be followed by the Australian Home Loans (exp -2.0%), NAB Business Conditions (exp 4)/Confidence (exp 3) and China Foreign Direct Investment. That is really about it today although the US NFIB Business Optimism Index will be released late in the session.
|INDICES / COMMODITIES|