Investors are provided with market outlook insights to help plan out their long term goals. Read the latest commentaries from our industry experts.
President Trump took center stage at the end of the week by saying he hasn’t agreed to postpone China’s tariffs which they suggested on Thursday. This saw the market’s hopes of a trade deal between the two nations fade. All week the market remained in a risk-on sentiment on the hopes the Phase 1 deal will be done which led to a fall in risk-off assets such as Gold and Japanese Yen. The US did agree with China’s comments to the mutual rollback on tariffs however a divide within the White House is causing the market’s risk-on sentiment to diminish.
The RBA and BOE both left rates unchanged at 0.75% as expected. The Bank of England is still considering risks to global growth and Brexit negotiations. The RBA held rates to allow time to assess the effects of lowering GDP estimates. The tone from the central bank also suggested that we won’t be seeing any rate hikes soon.
As you can see from the AUDUSD daily chart the price was finding support at the previous highs however the 0.9200 proved to be a tough resistance to crack and the price fell in line with the comments from Trump suggesting a rollback on tariffs hasn’t been agreed.
The NZDUSD fell in line with our estimates as price found resistance at 0.6440 last week. The kiwi also felt the negative effects of the trade deal comments with the price of NZDUSD breaking through the daily lows around 0.6330.
USDJPY remains at the key resistance zone with the market battling between the risk-on, risk-off sentiment. The Japanese Yen will likely remain to be pushed a pulled as the market continues to react to hopes rather than facts. Positive trade talks will see the currency weaken; negative trade talks will see the currency strengthen. This zone could be key in the near term.
Gold fell in line with the risk-on sentiment and USD strength, the price broke through the minor support of $1480.60 and continues to head towards the recent weekly breakout highs at $1450.00. This support zone could be an area where we see Gold buyers re-enter the market in line with the higher timeframe trend.
The stock markets continued to rally this week with the NASDAQ closing at record highs. Typically, through the end of the year, the stock markets do rally suggesting this sentiment will likely continue.