Weekly Market Commentary
Stocks rallied to close the week, after some adequate Jobs numbers out of the USA and growing sentiment surrounding the US/China trade talks recommencing next week. Non-Farm Payrolls met expectations and headline Unemployment numbers continued lower. Unemployment in the US fell back to 3.5% reassuring markets, after weak manufacturing data, during the week. The US and China sit down next week to continue trade negotiations with the prospects positive. The EUR traded back towards 1.1000, while the Yen rallied to 106.80, as the Dollar continued to reflect the market expectations of the Fed.
Commodity currencies are dependent on the US/China trade talks and this week will determine the direction of these trade exposed currencies. Expectations are high of a favourable outcome and this would drive strong support for these currencies. Failure would be a disaster and would be reflected in the currencies. The NZD has recovered to trade above 0.6300, while the AUD pushed up to 0.6770, but the trade negotiations between the US and China are key.
Weekly Market Calendar
7/10 US Budget, Australia Construction, China Services/Composite PMI, German Factory Orders
8/10 Australia Consumer Confidence, Japan Trade, Japan Current Account, Australia Building Confidence, German Industrial Production, NFIB Small Business Optimism
9/10 NZ Home Sales, Australia Consumer Confidence
10/10 NZ Food Prices, UK House Prices, German Trade Exports/Imports, UK Industrial/Manufacturing Production, UK Trade Exports/Imports, US CPI
11/10 NZ Manufacturing PMI, NZ Credit Card Spending, German CPI