Weekend Edition: The Dollar Will Continue to Slide, Come What May
Thursday 24th April 2025NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABThe US dollar will continue to slide, come what May. And probably come what June and July. Whilst he’s reluctant to be drawn too closely on timing, NAB’s Ray Attrill, head of FX strategy, says we can expect to see the US dollar fall another 10 percent, at least, with the Aussie returning about the 70 cent mark. Phil asks if that’s the best-case scenario; one where trade deals are agreed and tariffs minimised. What if the hefty tariffs return? Or Trump deposes Jerome Powell? Or the US heads into a recession? Whichever way you spin it, Ray says the US dollar is getting weaker and it’s not a short-term change. The weaker dollar could be around for a long time. Hosted on Acast. See acast.com/privacy for more information.
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33:08
China’s tariff hopes. A less worse scenario.
Thursday 24th April 2025NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABUS equities rose again this session, and te US dollar strengthened for the second session, as the Trump administration talked up the possibility of cuts to China’s tariffs. The Wall Street Journal reports the levies could be cut by more than half in some cases, although there’s declaration from Trump himself, or any indication of when this might happen. But as NAB’s Taylor Nugent explains, that’s not stopped markets seeing the positive side of it all. PMIs came in a little weaker than expected across Europe and the US, although manufacturing did somewhat better than services. It’s mainly second tier data today and tomorrow, and a ceasefire deal between Ukraine and Russia is looking less likely – if it’s accepted it’s a win for Russia. Hosted on Acast. See acast.com/privacy for more information.
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15:07
Peak Trump? Bouncing back on hope of deals
Wednesday 23rd April 2025NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABMarkets are behaving very differently today. US equities are rising, bond movement is subdued, and oil prices are back on the rise. NAB’s Sally Auld says sentiment is being driven by talk from the US administration about trade deals getting closer with India and Japan, and how he current impasse with China is unsustainable. So, does that mean tariffs won’t bounce back up after their 90day pause? That seems to be how markets are taking it, but Sally says the sentiment could change when we start to get real data on how badly the US economy (and others) have been impacted. Hosted on Acast. See acast.com/privacy for more information.
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17:17
Battle for the Fed Control
Tuesday 22nd April 2025NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABThe 'sell America' trade continued on Monday, with equities and bond prices both falling. NAB’s Tapas Strickland says it’s uncertainty over the independence of the Fed that is playing on market concerns this time. The US President has made no secret of his desire to replace Jerome Powell as Fed chair, although there’s a question of how far Presidential authority can stretch. This compounds other concerns. For example, how likely are trade agreements? It’s becoming apparent that a deal with Japan hasn’t progressed far, whilst animosity between China and the US ramping up further. Both countries are now threatening their trading partners to pick sides in the trade war. Tapas says we are now starting to see hard data showing us what’s really going on. Hosted on Acast. See acast.com/privacy for more information.
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15:12
Weekend Edition: Flying on Thin Margins
Thursday 17th April 2025Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.IATA is predicting the airline industry will break through the $1 trillion revenue mark, but with margins averaging up 3.6 percent. Phil suggests to airline industry analyst John Strickland that it’s not much of a return for such a capital-intensive industry subject to so much geopolitical risk. But, John argues, if you take the long-term perspective, and look for airlines with strong, proven management that have shown they can deliver margins and cope with crises, you can still enjoy healthy dividends. When it comes to the challenges of tariffs, the manufacturers face the biggest problem, with components sourced all over the globe. There’s also the rise of China’s aircraft manufacturing that is likely to break the Boeing-Airbus duopoly. Hosted on Acast. See acast.com/privacy for more information.
Start your day with the NAB Morning Call for the latest overnight key economic and market information straight from our team of expert market economists and strategists. This includes perspective on overnight news and market price action and the forces shaping movements in Australian and global markets in the days ahead. Hosted on Acast. See acast.com/privacy for more information.
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