Originally published by Rivkin Securities
US Markets were closed for a public holiday on Monday so it was a fairly quiet night. The DAX index and FTSE 100 were both down around 0.6% with losses accelerating in the afternoon. S&P/ASX 200 futures are down 34 points this morning.
Oil prices have continued to rally and WTI oil is now at US$62.50 per barrel after dropping below $60 just a week ago. OPEC and Russia continue to support the production cuts that are due to expire at the end of this year and they assure markets that there will be an orderly ramp up of production once the cuts expire. US oil production has now exceeded Saudi Arabia making it the second largest producer of oil (after Russia).
Today the RBA releases the minutes from the most recent monetary policy meeting and although rates were kept on hold at that meeting, market participants will be scanning the text to gain insights into when the RBA might begin hiking rates. With Australian long-term bond yields now right around the levels of US bonds, further rate hikes over there could start to put downward pressure on our currency. The AUD/USD is currently trading at US$0.791.
Data Releases:
- Australia RBA Monetary Policy Meeting Minutes 11:30am