Collinsonfx Weekly Marketing Commentary and Calendar

Weekly Market Commentary

Markets gave up further ground, as the US/China trade negotiations came into focus. Chinese negotiators cut short their US trip and sent the market into despair. Chinese negotiators were scheduled to tour US agriculture producers, but abruptly cancelled and went home. US equities closed the week on this note of negativity. The 'risk-on' trade boosted the Dollar, with the EUR hitting 1.1020, while the GBP retreated to 1.2475.

Commodity currencies resumed their slide in the face of the rising reserve. Australian Unemployment surprisingly rose to 5.3%, boosting the prospect of further RBA rate cuts, undermining the currency. The trade exposed currencies were further hit by the abrupt halt to trade negotiations, with the AUD falling to 0.6760, while the NZD plunged to 0.6250. The NZ GDP number came in better than expected, 2.1% p.a., but failed to support the much troubled currency. Markets will look to the RBNZ rate decision, in the coming week, which will likely determine the short term currency direction.

Trade will likely dominate the macro market action, along with global growth prospects and speculation over Central Bank actions.

Weekly Market Calendar

23/9 Australia Services/Manufacturing/Composite PMI, France/German/EU Services/Manufacturing/Composite PMI, US Services/Manufacturing/Composite PMI

24/9 Australia Consumer Confidence, Japan Services/Manufacturing/Composite PMI, Case Shiller Home Price Index

25/9 US Consumer Confidence, Richmond Fed National Activity Index, NZ trade Exports/Imports, Bank of Japan Minutes, RBNZ rate Decision, German Consumer Confidence

26/9 US New Home Sales, US trade Exports/Imports, US GDP, US Weekly Jobless Claims

27/9 China Current Account, US Pending Home Sales, Kansas City Fed Manufacturing Activity, NZ Consumer Confidence, Japan CPI, EU Consumer Confidence, US Durable Goods Orders, University of Michigan