Post US Elections

Daily Update

Yesterday’s Markets

• US Presidential Election Results
• AUD Westpac Consumer Confidence
• CNY Consumer Price Index

Yesterday Explained

Australia released Westpac Consumer Confidence which remained unchanged. AUD was under positive pressure after copper prices nearly spiked by 10% yesterday since Australian economy is highly inter linked to commodities.

CNY consumer price index reports came as expected but CNY reacted heavily since the unexpected US Electorate results due to trumps negative propaganda towards china.

Highlight of this year will be the Unexpected Win by Trump in US Elections for the 45th President of USA. Markets reacted heavily since USD is the largest used currency in world trade all over the globe and paired with all major rival currencies. 

Why Euro was crashing after trump win

1. FX market is similar to a knee jerk reaction in volatility once any important event takes place. The short term thinkers, investors panic caused a huge move in the market but this reaction was very minimal compared to BREXIT . Furthermore the hype of anticipation about the winner of US elections settled down much quicker than expected.
2. Trumps Win prompted a fair amount of focus on fed policy and tightening risks and short term rate spreads driving the USD stronger. However since Trump will only take office in January 2017, the possibility of a Fed rate decision is possible.

Today’s Markets

• RBNZ Interest Rate Decision, Monetary policy statement & RBNZ press conference.
• AUD Consumer Inflation expectation, Home Loans & Investment Lending for homes.
• USD Initial Jobless Claims & Continuing Jobless claims

Today’s Markets

By Early Dawn, New Zealand will decide its Interest Rate decision followed by the Monetary Policy Statements which sets out how the Reserve Bank proposes to formulate and implement Monetary Policy during the next five years. Australia will release its consumer inflation expectation of future inflation during this coming year.

This report has a significant effect on probability of rate hike by the RBA, followed by reports on Home Loans & Investment Lending for homes which are both reviews on how the Housing Markets demand & supply has reacted in the past months. Significantly a higher reading is seen as a positive trend for Australia’s Economic growth. To close the day, USA will release reports on Initial Jobless claims & continuing jobless claims.