The Australian dollar (AUD=D4) was flat at $0.6992 after gaining about 0.4% the previous day. The Aussie had gained after the Reserve Bank of Australian cut interest rates but offered a more balanced outlook.
The 10-year U.S. Treasury yield (US10YT=RR) extended an overnight fall and brushed a fresh 2-1/2-year low of 1.965%.
At the G20 summit in Japan last weekend, Washington and Beijing agreed to restart trade talks after U.S. President Donald Trump offered concessions.
But investors were wary about the chances of a resolution to the year-long trade war between the world’s two biggest economies, especially given the recent breakdown in talks and Trump’s comments that any deal would have to be tilted in U.S.’s favor.
Sentiment was also dented by Washington’s threat of tariffs on $4 billion of additional European Union goods in a long-running dispute over aircraft subsidies.
Morgan Stanley cuts long-term Brent price forecast*
Morgan Stanley has lowered its long-term Brent price forecast, citing the decision by the OPEC and its allies to extend production cuts by longer than expected as a source of oil price weakness.
“OPEC cuts can be very effective when they smooth over relatively temporary imbalances in supply and demand. However, when they become multi-year transfers of market share, history shows that they are usually associated with oil price weakness rather than oil price strength,” the investment bank said, according to Reuters.
The bank has revised lowered its long-term Brent price forecast to $60 per barrel from $65 per barrel and expects prices to fluctuate around $65 per barrel, from $67.5 per barrel previously, in the next three quarters. #ALLIESFIN
By: via @AlliesFin Serve T.ME/ALLiESFiN
