Durable goods on the agenda
It's been a wild start to the week already with AUD/JPY breaking 70.00 for the first time since 2009 only to reverse higher to 71.60 as Trump confirmed that he can't bear to see stock markets fall.
The topic-du-jour is whether or not China called the US to talk trade. Trump said they didn't Hu Xijin said there were some technical calls but nothing meaningful.
Whether or not it happened is the wrong question to be asking. The right one is whether a trade deal is coming. On that front, we're further away than ever and moving in the wrong direction. I'll be interested to see if today's optimism holds up once stock markets open.
There will also be some news to digest soon. The July prelim durable goods orders report is due at 1230 GMT and the consensus is +1.2%. The spot to watch is core orders, which are non-defense capital goods orders ex air, which are forecast to be flat after a 1.5% rise in June.
I don't think these are going to be a big mover because anything that's good will be brushed aside because it was before the latest trade war escalation.
For more, see the economic calendar.
