It appears the honeymoon may be over for the Trump administration, with consumer confidence taking a dip in the latest reading, while the previous months reading was also revised lower. Trumps use of executive orders has clearly created a storm and that storm has resulted in now two solid down days in a row for both local and U.S equities. The Dow Jones finished down half a percent while our local market got spanked to the tune of another 0.8%.
Commodities and the Aussie dollar however continue to weather the storm and are holding up quite nicely perhaps in lingering response to hope that Trump will push ahead with his $1trillion+ infrastructure plans for the U.S economy.
AUD/USD may test 0.7600 today or tonight - a level it has tested twice already this month and failed to pass - as we see Chinese manufacturing data around lunchtime followed by U.S ADP preliminary jobs numbers and the latest from the U.S Federal Reserve around 6.00am tomorrow morning. They are not tipped to change rates from 0.75%, however anything is possible and all traders will be watching the markets closely early tomorrow morning.
DATA RELEASES TODAY:
CNY - Manufacturing PMI at 12.00pm
GBP - Manufacturing PMI at 8.30pm
USD - Preliminary ADP Employment Numbers at 12.15am
USD - ISM Manufacturing at 2.00am
USD - FOMC Statement and Fed Funds Rate at 6.00am
AUD EXCHANGE RATES:
AUD/USD – 0.7543
AUD/GBP – 0.5981
AUD/EUR – 0.6984
AUD/NZD – 1.0332
AUD/JPY – 85.634
***Above rates are indicative wholesale rates and intended as a guide only***
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