The US$ remains under pressure on all fronts again on Tuesday, hitting a 2-1/2-year low against the Euro due to a combination of month-end portfolio adjustments, expectations for a more hawkish ECB and the ongoing chaos in the White House. The other majors were strong as well, with Cable reaching a 11 month high, while the Yen pushed to a six-week high against the dollar due to concerns over the low U.S. inflation. US stocks are mixed, with the DJI powering to a new all time high, underpinned by Boeing, while the S+P was flat and the NASDAQ lower, pulled down by Alphabet and Facebook. The metals were firm, while WTI has finally made it back to 50.00pb. In terms of data, the Chicago Purchasing Managers Index was soft, not helping the dollar’s cause although the Dallas Fed Mfg Business Climate did beat expectation. The Pending Home Sales were also better than expected.
Tuesday is going to be another busy session, beginning with the RBA Interest Rate Decision at which no change to policy is expected although the statement is likely to be unhappy with the elevated level of the currency and will probably attempt to talk the Aud$ lower. The global manufacturing PMIs are due, and will be the main highlight in Europe, along with the preliminary Q2 EU GDP (exp 0.6%qq, 2.1%yy). The US session will look to the manufacturing ISM (exp 56.5), the ISM Prices Paid figure (exp 56) and the US Personal Consumption/Expenditure Index for guidance. Kiwi traders should look out for the Global Dairy Trade Index, while oil traders will be watching the API Weekly Crude Oil Stock Inventory.
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|INDICES / COMMODITIES|
|ASX SPI: 5663|