Market Update – 1st July 2019 – Risk Assets Rise As Trump Signals Trade Talks Back On

Please note that the commentary below is factual information provided to a group of readers as a web blog, and where an opinion is expressed by the author, it is GENERAL ADVICE only.

Risk On:

Risk is back on this morning thanks to ‘progress’ made at the G20 in Tokyo between the Donald and Chinese President Xi Jinping. At their latest soiree, the two agreed not to raise tariffs but rather re-invigorate talks which had gone cold as a result of Trump’s inability to do a deal or even negotiate like a grown up; not surprising though for a man who has gone bankrupt a total of six times. I digress.

Gold, Yen, USD Dip:

Risk assets such as the AUD, equities and commodities have all risen and look likely to continue to make gains through the day while traditional safe haven’s like Gold, the Japanese Yen and the U.S Dollar are all struggling this AM. What ends this trade war between China and Trump remains to be seen and the truth is any real cessation of animosity could still be years away; in the meantime global growth has waned while central banks across the globe look likely to continue with stimulus measures.

Chinese manufacturing PMI is due out at 11.45am followed by U.S ISM manufacturing PMI at midnight this evening AEST.

AUD EXCHANGE RATES:

AUD/USD – 0.6997

AUD/GBP – 0.5505

AUD/EUR – 0.6153

AUD/NZD – 1.0425

AUD/JPY – 75.849

OTHER MARKETS:

All Ords (XAO) – 6,699

Gold – A$1,980/oz

Silver –  A$21.59/oz

WTI – US$59.46/barrel

DATA RELEASES TODAY:

CNY – Caixin Manufacturing PMI at 11.45am

USD – ISM Manufacturing PMI at midnight

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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