Tuesday has been a busy session although there was little going on until the news headline that N Korea is open to talks with the US on nuclear weapons, which created an immediate rise in risk-sentiment and saw the commodity currencies perform particularly well. At the same time there was some immediate selling of the Yen, on the back of the need to fund increased risk positioning. In other headlines, the US$ suffered on all fronts amid the ongoing concerns over the prospect of a trade war, while speculation that Donald Trump’s economic adviser Gary Cohn could step down if Trump decides to proceed with tariffs also kept the pressure on the downside. The lower dollar has allowed the metals to have a strong session (Gold +1.2%, Silver +2.2%), while WTI and the stock markets have been choppy but pretty much unchanged on the day.
Wednesday will be another busy one for the Aud$, with a speech from the RBA’s Lowe coming ahead of the release of the Q4 GDP and the February AIG Performance of Construction Index. Japan will see the Leading Economic Index and Coincident Index both for January. Early Asia will also be watching the Fed’s Brainard and Kaplan, who will both be speaking, so it could be quite a busy morning. The EU Q4 GDP will be the European focus, while from the US we get more Fed speakers (Bostic/Dudley), the January Trade Balance and also the ADP Jobs data for Feb (exp +195k). Have a good day.
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