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Better buying on the cash open lacks momentum


Equities spill over into Bond and FX

FOREX: Westpac write that "the recent market flirtation with RBA easing may
prove fleeting. Instead, AUD's main challenge remains the fragile global risk
environment, especially US-China trade relations, as the clock ticks towards the
1 March deadline for a deal. But recent news flow has been more encouraging,
with potential for sharp AUD outperformance on an agreement. The GBP mood will
of course be largely driven by Brexit developments. We doubt that UK PM May's
compromise bill will pass Parliament on 15 Jan, raising the risks of a "hard"
Brexit. This could see GBP/AUD re-test the Dec 2018 lows around A$1.7200."
MNI London Bureau | +44 0203-865-3809 |