US stock markets headed up to yet new all-time highs on Monday as US Republican lawmakers move ever closer to passing the long awaited tax plan although the dollar did not seem to notice and whipped around, mostly lower – in thin conditions -, on concerns about the bill’s impact on economic growth and interest rates. Sterling in particular halted its recent slide and found some upside momentum although, as with the Euro the rally dissipated somewhat later in the day. In other markets, both the S+P and the DJI headed to new all-time highs, while the Nasdaq surpassed the 7,000 point mark for the first time. Elsewhere, the metals were a bit higher on the back of the soft dollar while WTI remains rangebound either side of $57 p.b.
The Kiwi will be the initial focus on Tuesday, with the release of the Q4 WBC Consumer Survey and the December ANZ Activity Outlook. It will also be closely watched later in the day when the Global Dairy Trade Index is released, midday London. Before that, following on from the early NZ data, the RBA Minutes and the final RBA Bulletin of the year will be released, which may inspire some interest in the Aud$. The EU focus will be on the German IFO Business Climate/Expectations while from the US we get the Housing Starts, Building Permits, Current Account, and the API weekly Crude Oil Stock Inventory.
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