It has generally been a fairly quiet session, with the US$(+0.25%) and the US stock indices (+0.4%/0.6%) trading mildly higher as traders look forward to the Presidents State of the Union Address, which Donald Trump will give during the Asian session. There have been a couple of notable exceptions to the steady markets, with Cable trading sharply lower, initiated by a poor UK Construction PMI and then exacerbated by the ongoing uncertainty about Brexit talks, pushing Cable back below 1.3000. The other standout was the Australian Stock Market which jumped over 2% after the release of the Senate Banking Inquiry and has maintained those gains overnight, in line with the US indices.
The Swiss Franc was of interest on Tuesday, with US$Chf breaking back above parity and staying there (just!) for the first time since mid November.
Elsewhere the metals were unchanged again while WTI was 1.5% lower as the ISM Non-Mfg data missed expectations, slowing to a 5 month low in January and increasing worries of demand for crude on a global scale.
Wednesday will see the US SOTU address from Donald Trump – during the Asian session – as well a s a speech from the RBA Governor Phillip Lowe. Both will be closely watched, with Trump likely to project a feel-good bias towards the US outlook, while the RBA’s Lowe could provide some volatility for the Aud$ following on from yesterday’s Interest Rate Decision. That aside we are in for a quiet session. Holidays dominate in Asia, and NZ is also out today. Later on the German Factory Orders and US Goods Trade Balance and Non-Farm Productivity are due, while the Global Dairy Trade Index and the EIA Crude Oil Stocks Weekly Change will also be released.
Economic data highlights will include:
Wed: NZ Holiday, Donald Trump SOTU address, RBA Governor, Lowe, speech, German Factory Orders, US Goods Trade Balance, Non-Farm Productivity, Global Dairy Trade Index, EIA Crude Oil Stocks Weekly Change
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