Collinsonfx Daily Market Commentary

US equity markets charged to new record highs, once again, supported by growing confidence over the prospects of the US/China trade deal. Chinese officials announced that tariffs would be cancelled and not just suspended, in the 'phase one' deal, lighting up market confidence. US Bond Yields spike to 1.928%, in the 10 year, reflecting the demand on money and the move towards equities. Gold prices also tumbled, while the demand for Oil jumped, trading up to $57.50. The Dollar also rallied boosted by the higher yields, with the EUR trading 1.1040, while the Yen moved to 109.40. The GBP also slipped to 1.2820, as the Bank of England declined any chance to cut rates, reticent during the Brexit election.

The rising reserve was overwhelmed by the growing economic confidence emanating from the US/China trade deal, which allowed the AUD to regain 0.6900, while the NZD was caught in irons. The NZD has suffered the negatives and enjoyed improved recent economic data releases, but this has lead to speculation that the RBNZ would become more hawkish on monetary policy, thus allowing the NZD to fall back to 0.6350.

US/China trade remains the key driver on markets.