RBA Governor Michele Bullock speaks at 1:05 pm Sydney time today and that’s the lone highlight on the Asia-Pacific calendar. It’s a quiet one but there are no local holidays, just a gap on the calendar.
China will be in focus as we eye the second day of trading in CXMT, which deputed post-IPO with a +450% gain yesterday, making it the most-valuable company in mainland China.
For AUD and NZD, trading on Monday was disappointing as both closed near their worst levels of the day. They had opened strongly on the possibility of peace in the Middle East but that optimism slowly dwindled despite ongoing declines in oil. Brent fell $9.17 to $87.61 in a rout. The problem is that risk trades sagged due to chipmakers and the Nasdaq fell 0.3%, erasing a strong start.
Eyes will be on the next few hours to see if there are any strikes or comments from either side about a resumption of hostilities, or negotiations.
Beyond that, we’re waiting for Wednesday’s FOMC decision as it will be an unusually strong post-decision reaction, given the lack of guidance from Warsh. Before that, we get June advance trade balance and the Richmond Fed in the upcoming US session.
For more, see the economic calendar.
This article was written by Adam Button at investinglive.com.