Market Brief: AUD Best Performer With RBA On Hold


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FX Brief:

  • RBA held rates at 0.75% as widely expected, although they could still b eon track to cut rates as early as Q1 2020.
  • Trump took to Twitter to again tell the Fed they need to lower rates to fend off low inflation, and combat yesterday’s weak ISM manufacturing print. Oh, and the “dollar is very strong relative to others”. Basically, cut the rates.
  • Japan’s government are preparing a $120 billion stimulus package to help kick start their lacklustre economy. Whilst it’s expected to be around $120 billion initially, it could rise to $230 billion when private-sector spending is included.

  • Price Action:

    Equity Brief:

  • The performances of most key Asian stock markets have fared better versus the U.S. benchmark stock indices where they have recorded losses between -0.90% to -1.10% except for Australia’s ASX 200.
  • U.S. President Trump has upped the ante again on U.S. “hostile” global trade policy where the U.S. administration has reinstated steel tariffs on Brazil and Argentina imports and proposed new levies on France.
  • The closure of the Phase One U.S-China trade deal has become more complicated with the recent support from U.S. towards the Hong Kong’s anti-government protesters. China has hinted more retaliation measures via state media that the Chinese government will soon publish a list of “unreliable entities” that can lead to sanctions against U.S. companies from disputes over human rights in Hong Kong and Xinjiang.
  • Australia’s ASX 200 is the worst performer so far with a decline of -2.20%, the worst intraday loss in 9 days since 20 Nov 2019 after a fresh all-time high of 6893 printed on 29 Nov 2019. Leading the loss are Technology and Consumer Non-Cyclicals sectors where both have tumbled by -3.49% and -3.40% respectively.
  • The S&P 500 E-Mini futures has staged a modest recovery of 0.20% in today’s Asian session to trade close to its current intraday high of 3121.   
  • Price Acton (derived from CFD indices):

    Economic Calendar

    Matt Simpson and Kelvin Wong both contributed to this article
    Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.

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