Global Themes

Greenback falls as US shares hit new all-time highs

The USD weakened further overnight as market sentiment remain positive and US equity markets reached new all-time highs.

As a result, markets favoured more economically sensitive currencies and shunned the greenback with the US dollar index falling to lowest level in ten weeks

Markets continued to be upbeat as investors presumed much of the short-term bad news about the US-China trade war is now behind us.

After a series of new tariffs were announced by both the US and China earlier in the week, the focus now shifts to the next round of talks.

The renew optimism saw global sharemarkets gain with the AUD lifted by the upbeat sentiment.

Four for four

The USDSGD saw its fourth-straight day of losses with the pair down 0.4%.

The New Zealand dollar was higher after a stronger-than-expected annual growth rate of 2.7% was reported in NZ yesterday.

We saw big gains in the euro and the British pound despite another tough day of Brexit talk that ended without resolution.

Fed ahead

The market’s upbeat sentiment will be tested today with a series of manufacturing index due to be released.

The purchasing manager indexes (PMI) are widely seen as the most up-to-date reading of the global economy. Key numbers are due from Japan, Europe and the US.

Next week, the focus shifts to the all-important US Federal Reserve meeting.

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