- US equities sidestep worries of rising mortgage delinquencies.
- AUD/NZD is knocking on key resistance to continue recent momentum.
- The US-China trade review delay and increasing tension over Taiwan lead worries
The Wall Street traded mixed yesterday with S&P 500 and Nasdaq clocking gains of 0.27 and 1.00 Percent respectively while the Dow Jones index closed in red, down 0.31 Percent. The consumer finance stocks led the losses in the market, with American Express shedding almost three Percent at the close.
The haven-linked currencies also traded mixed, with the US dollar declining while the Japanese Yen inched up higher. The sentiments were affected by the highest rate of mortgage delinquencies in the US since 2011, reported for the second-quarter period. Nevertheless, the risk-on undercurrent in the markets was able to shrug off this development to push equities higher.
Asia-Pacific Trading Session
The RBA meeting minutes which will be released today and the developments in the US-China tensions are the main focus in the Asia-Pacific trading. Apart from the delay in talks between the two largest economies, the US-led multi-billion arms sales to Taiwan has become another sore point in their bilateral relations.
The Asian market risk sentiments might be affected by the listed events. Still, the bullishness in Wall Street could give support to equities and pro-risk currencies like the Australian dollar. The US dollar can show more weakness if the market participants prefer returns over liquidity.
