Global Themes

AUD

Brexit shambles as Boris Johnson steps down, US Stocks Rally.
Brexit isn't coming home?

Overnight we have had another minister resign in the UK, the foreign secretary Boris Johnson. He is to be replaced with Jeremy Hunt, this combined with David Davis’s resignation yesterday undermine weakness in the UK government which has translated into GBP weakness.

The S&P 500 Index climbed for a third day and the Dow Jones Industrial Average popped through key technical levels shrugging off some of the trade war worries ahead of key earnings reports this week.

AUD holds yesterdays gains.
AUD climbs 1% against sterling breaking through the 200 day moving average, creating support above the 0.56 level. AUDUSD pulls back from the highs of overnight, however we are 2.1% up over the lows of early in the month.

Copper prices have also fallen as an indicator of global growth sentiment ahead of increased tariffs expected out of the US, however no escalation has been forthcoming as of yet from the discussed $500 billion Trump spoke about last week.

Coming Up…
Looking forward to today we have business confidence numbers at 11:30am AEST from NAB and UK GDP overnight.

All eyes will be on Trump’s reaction to the Chinese tariff retaliation, although that maybe overshadowed with the US's focus on Trump's court pick dominating the headlines.

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