Investors Assess the Speech by Donald Trump. Aussie Collapsed after the RBA Comments

The US dollar strengthened against a basket of major currencies during yesterday’s trading session. The dollar index (#DX) closed in the positive zone (+0.26%). Financial market participants assess the speech by the US President Donald Trump. The President pointed out that the priorities for this year are to resolve the issue of illegal migration and the construction of a wall on the border with Mexico. Donald Trump also noted that if an agreement was reached with China, then it should change the structure of countries’ relations in order to stop dishonest trade practices, as well as protect American jobs.

Among other issues, economic data from the Eurozone, the UK and the US were published yesterday. Thus, the index of economic activity in the services sector of the Eurozone counted to 51.2 in January, while experts forecasted 50.8. Markit composite PMI counted to 51.0 instead of 50.7. The index of economic activity in the UK services sector fell to 50.1 in January, while investors expected 51.1. The ISM nonmanufacturing PMI in the US counted to 56.7 in January and was worse than the expected value of 57.2.

Today, during the Asian trading session, aggressive sales of the Australian dollar have been observed. The fall in AUD/USD quotes counted to almost 1.3%. Governor of the Reserve Bank of Australia, Philip Lowe, said that interest rates could be reduced if unemployment rose and inflation remained low.

The “black gold” prices are falling. At the moment, futures for the WTI crude oil are testing the mark of $53.40 per barrel. At 17:30 (GMT+2:00), a report on crude oil inventories will be published in the US.

Market Indicators

Yesterday, the bullish sentiment prevailed in the US stock market: #SPY (+0.42%), #DIA (+0.65%), #QQQ (+0.88%).

The 10year US government bonds yield fell slightly. Currently, the indicator is at the level of 2.682.69%.

At 15:30 (GMT+2:00) important economic reports from the US will be published.

We also recommend paying attention to the following statistics:Ivey PMI in Canada at 17:00 (GMT+2:00);Data on the labor market of New Zealand at 23:45 (GMT+2:00).

by JustMarkets, 2019.02.06