U.S GDP figures released overnight failed to meet expectations but did little to quell bets that the U.S Federal Reserve could raise rates as soon as this month. U.S GDP came in at 1.9% which while slightly below expectations of 2.1% was around trend. U.S consumer confidence similarly continued on trend pushing marginally higher to 114.8 marking its highest level since around August 2007, notably August 2007 is also around the time that consumer confidence started to unwind.
Trump speaks today and while its not technically a state of the union address it is his first full speech aimed at the American people and should clarify what he intends to do in his time in the White House. The U.S stock market which has gone on a huge run since he entered office could come unstuck if he fails to deliver or doesn't double down on his infrastructure plans, tax cuts and deregulation promises. As suspected this really is the focal point today but local GDP figures released at 11.30am this morning will also be watched closely - it could be a very interesting 24 hours ahead.
DATA RELEASES TODAY:
AUD – Aus GDP at 11.30am
CNY – Caixin Manufacturing PMI at 12.45pm
All - President Trump Speaks at 1.00pm
AUD EXCHANGE RATES:
AUD/USD – 0.7621
AUD/GBP – 0.6153
AUD/EUR – 0.7208
AUD/NZD – 1.0647
AUD/JPY – 86.354
***Above rates are indicative wholesale rates and intended as a guide only***
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