| Daily Market Commentary
Global equities rallied strongly, to open the week, after trade war fears and growth prospects were allayed. President Trump has dismissed fears of a looming recession and his key economic adviser, Larry Kudlow, reinforced this. The US consumer is spending and the economy continues to grow strongly. The German Finance Minister, Olaf Sholz, announced Germany had a EUR$50 'fighting fund' to boost fiscal stimulus. This calmed fears about a recession in the European engine room. EU CPI contracted last month and the annual headline number has fallen to 1%. European growth is seriously challenged and the ECB is running out of monetary options, so fiscal stimulus will be needed. The EUR slipped below 1.1100, while the GBP has rallied to 1.2135, as Brexit approaches fast.
The trade exposed commodity currencies continued to cede ground, with the AUD drifting to 0.6760, while the NZD looks to test 0.6400 on the downside. The US/China trade war and the Chinese supply chain are key to these currencies. The G7 coming up in France may be a grand stage to announce any progress on the trade front? Central Bank leaders gather in Jackson Hole for the latest edition of their annual conference. This will be addressed by the Fed Chairman Powell on Friday.
| | | | Key Dates & Headlines
Weekly Market Calendar
19/8 NZ Services PMI, UK House Prices, Japan Trade Exports/Imports, NZ Dairy Auction, EU Current Account, EU CPI
20/8 Australia Consumer Confidence, RBA Minutes, EU Construction
21/8 NZ Credit Card Spending, US Weekly Mortgage Applications, US Existing Home Sales, FOMC Meeting Minutes,
22/8 Australia Services/Manufacturing/Composite PMI, Federal Reserve Symposium Jackson Hole, Japan Manufacturing PMI, France/German/EU Services/Manufacturing/Composite PMI, US Weekly Jobless Claims, US Services/Manufacturing/Composite PMI, Kansas City Fed Manufacturing Activity
23/8 NZ Retail Sales, Japan CPI, Fed Chairman Powell addresses Jackson Hole Symposium, US New Home Sales
| | | Markets
| Currency | | | AUD / USD | 0.6760 | | AUD / GBP | 0.5570 | | AUD / EUR | 0.6100 | | AUD / NZD | 1.0550 | | AUD / JPY | 72.12 | | AUD / CAD | 0.9015 | | AUD / SGD | 0.9380 | | AUD / CHF | 0.6635 | | AUD / HKD | 5.3090 | | AUD / THB | 20.87 | | AUD / ZAR | 10.4520 | | AUD / DKK | 4.5520 | | AUD / SEK | 6.5510 | | | | | Equity | | | All Ord | 6,550 | | DOW | 26,160 | | NASDAQ | 8,009 | | FTSE | 7,189 | | NZSE | 10,702 | | | | | Commodity | | | Gold | 1,509 | | Oil | 56.09 |
*Indicative Rates only showing buy and sell midpoint
| | | | | |