Month-end rebalancing, China tensions and the RBA

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By NAB - The Morning Call and Phil Dobbie. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.
Tuesday 1st December 2020 The US dollar was losing ground for most of the session today before a sudden reversal that knocked the Euro off a multi-year high (touching $1.20). NAB’s Ray Attrill explains how it can partially be explained by hedge-funds exposed to US equities rebalancing their portfolios at month-end. The pound continues to perform as though a post-Brexit trade deal has been reached, which it hasn’t, and oil markets will have to wait another day to hear whether OPEC will extend production cuts, and for how long. The relationship between Australia and China continues to worsen, but, as yet, there’s been little economic impact, except for the coal industry. Could the situation escalate? And today, the RBA will do little, whilst Jerome Powell is in front of the US senate to explain the Fed’s plans.

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