Markets are pleased with the risk on sentiment and stocks are enjoying the optimism that has spread far beyond Wall Street in Asia.
The Australian has benefited after the RBA kept interest rates unchanged, signaling that the country’s economy is continuing to stabilize. AUD / USD was at 0.6880 before the news, and is currently trading near 0.6900.
The yen’s crosses were backed by reports that US-China talks were going so well that it was only about eliminating tariffs imposed on September 1st. I find this more about a twist of hands on China’s part than a positive development, but no matter – the results are personal.
Today’s European session has no economic news to play the role of catalyst, so I expect the positive risk on tone to continue and the major stock indices in the bloc to continue rising.
Trader Aleksandar Kumanov