According to ANZ analysts, the market is desperate for some good news and was demonstrated by the broad risk-on response to the glimmer of a resolution in Hong Kong and the faintest delineation of trade talks in October.
Key Quotes
“A string of positive data in Australia could see recent momentum in the AUD persist as short positions continue to get squeezed. The problem is that it’s hard to see how this week’s moves can be sustainable while deeper geopolitical rifts remain intact.”
“The demands of Hong Kong protestors have moved beyond extradition; mistrust runs deep in Sino-US relations; and the Brexit circus refuses to fade. The burden ultimately falls on policymakers who are trying to gauge the size of the response needed to steer the ship away from the rocks.”
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