- This morning, US Treasury Secretary Steve Mnuchin said an August Tax reform deadline is not possible, however he still expected tax reform to be enacted this year. In contrast with Trumps comments, Mnuchin also said long term dollar strength is positive.
- This saw late session gains in the US Dollar Index and Equities this morning, recovering some losses from Geopolitical tensions focused on North Korea, Russia and Syria last week.
- On Monday Gold traded up to 1,295.6 its highest level since November 2016 after North Korea’s failed missile launch attempt on Sunday.
- However, for now, markets aren’t spooked by geopolitical tensions and risk off positions have pulled back. This, even after the U.S. dropped “the mother of all bombs” in Afghanistan on Thursday and Vice President Mike Pence saying the “era of strategic patience” with North Korea was over.
- Crude oil slipped on news of rising U.S. shale production and profit-taking following three straight weeks of gains, currently trading in familiar territory, around the 53.19 level.
- USD/JPY hovered near the 108-level yesterday, but failed to break. The pair is down 8% this year. The AUD/USD also broke through the 0.76 level and traded two week highs overnight, but failed to hold, currently trading 0.7589.
- Protection buying into the long weekend was unwound in the VIX overnight, trading to last Tuesday’s level of 15.1.
Holiday Price changes (AEST)
| Market | Thursday 13th @ 5PM | Tuesday 18th @ 7AM | Change |
| EUR/USD | 1.0655 | 1.0643 | -0.0012 |
| GBP/USD | 1.2551 | 1.2565 | +0.0014 |
| USD/JPY | 108.921 | 108.966 | +0.045 |
| AUD/USD | 0.7578 | 0.7589 | +0.0011 |
| Dollar Index | 100.07 | 100.16 | +0.09 |
| S&P500 | 2,342.2 | 2,348.6 | +6.4 |
| DOW | 20,560 | 20,640 | +80.0 |
| ASX200 | 5,874.9 | 5,876.6 | +1.7 |
| Gold | 1,284.5 | 1,284.3 | -0.2 |
| Crude Oil | 53.41 | 53.19 | -0.22 |
