The market gets back to basics focussing on the US Federal Reserve’s rate hike outlook. Tomorrow’s gathering of central bankers in Jackson Hole will be closely watched where Fed chair Jerome Powell will be the featured speaker.
Meanwhile, the dollar held onto recent gains as US-China trade negotiations produced no breakthrough.
The political uncertainty in Australia may bite the dust as a new Prime Minister could be appointed today. But that is unlikely to have a big impact on the Reserve Bank of Australia’s outlook.
For the data front, New Zealand’s trade deficit in July widened to a 9-year high, courtesy of a sharp rise in petroleum imports. Their trade deficit rose to $4.4 billion annually in July – the largest deficit since March 2009.