I. Market focus:
The American dollar at the beginning of the session of Tuesday continues to sustain losses. The negative impact on dynamics of the American currency is still exerted by comments of the U.S. President Donald Trump who the day before has criticized again to FRS. But if earlier as an object of criticism of Trump the Federal Reserve System in general acted, then now he has focused on the head of the regulator Jerome Powell. What hasn’t changed, so it is a reason for criticism: the American president is dissatisfied the policy of gradual increase in discount rate pursued by the Federal Reserve System. Trump has said that, appointing Powell to a position of the chairman of FRS, he considered that that will be a supporter of preservation of a low interest rate, and with disappointment has found out that it has appeared not so. According to the Bloomberg agency, disapproving comments of Trump have been read on Friday at the closed meeting with influential sponsors of Republican Party of the USA. Later Trump has repeated the critical remarks to the head of the Federal Reserve to Reuters agency.
Trump has said in the same interview that he doesn’t expect much from a meeting with delegation of the ministry of commerce of China which has to take place this week in Washington (messages that the meeting will begin on Tuesday arrived yesterday, but at the time of preparation of this material they haven’t been confirmed). The U.S. President has added that he has no time frames for the decision of a trade dispute with China. The pessimistic spirit of Trump concerning the expected negotiations, most likely, is transformed to instructions for representatives of the American side to adhere to a hard line and not to make concessions. So hardly the expected meeting will become for the markets a positive event.
The session of Tuesday won’t be oversaturated by macroeconomic reports. The statistics on retails in New Zealand which will leave at 22:45 GMT will be the most important data of the second session of week. But the main attention of participants of the markets is directed to an annual conference of FRS to Jakson Hole (Wyoming, the USA) which will begin later this week.
II. What speak in the market about:
The results of researches published by Conference Board have shown: following the results of June the major economic index (LEI) for Australia has grown by 0,2 percent, and has made 105,7 points (2016=100). We will remind, the index has recorded zero change in May and increase by 0,2 percent in April. Within six months (from December, 2017 to June, 2018) the indicator has grown by 0,9 percent after increase for 0,6 percent for the previous six-months period (from November, 2017 to May, 2018). Meanwhile, the coinciding economic indicator (CEI) has grown by 0,4 percent in June, and has made 103,7 points (2016 = 100) that has followed increase on 0,2 percent in May and in April. For the six-months period (till June) the index has grown by 1,2 percent after increase by 1,0 percent for the previous six-months period (from November, 2017 to May, 2018)