The G20 opened in Brazil and expectations were high for unity and a consolidated response to global issues. The cloud hanging over the meeting of 20 of the biggest economies in the world, was war escalation threatening in Europe and Trump. Melei of Argentina is a Trump acolyte and threatens many of the consensus items set to be agreed at the meeting. There is big change in the US, and this has already begun manifesting in Europe, with changes coming in Austria, Slovakia and likely coming in Germany very soon. Markets were quiet after a week of robust energy, with equities and the US Dollar, taking a spell. This allowed the EUR to bounce off 1.0550, while the GBP stabilised at 1.2660. UK GDP Growth data was disappointing, last week, and inflation numbers will be closely watched this coming week.
The softer reserve allowed some recovery in commodity currencies. The AUD headed back to 0.6500, while the NZD bounced to 0.5880, following stronger than expected PPI data. Markets keenly await inflation and growth data this week and local markets will be awaiting the release of the RBA minutes.
