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Greenback drops with stocks, bonds as trade...>

FOREX
FOREX: Greenback drops with stocks, bonds as trade hope sours
-In a particularly high volume session for both equities and fixed income,
markets eschewed anything with a US flag on it as traders returned from the
Thanksgiving holidays with renewed fears of US-China trade relations. US
Commerce Secretary Wilbur Ross appeared particularly hawkish on trade in an
appearance on Fox News, stating that the US would be happy to ratchet tariffs
higher on Dec15 in the event of no phase one deal. Markets responded by selling
equities hard, giving the S&P its worst performance in two months.
-This, twinned with poor ISM Manufacturing and construction spending numbers,
conspired against the greenback, giving EUR/USD its best session since
September. Antipodeans were the top performers as markets further priced out the
odds of a near-term RBNZ rate cut following firm terms of trade data this
weekend. NZD/USD rallied to $0.6511, a new multi-month high, coming just shy of
the 200-dma at $0.6548. The pair hasn't traded above that mark since late July.
-The RBA rate decision takes focus Tuesday, followed by UK construction PMI.
ECB's de Cos, Schnabel and Coeure are all due to speak.

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