Finance World

Currencies

Trendline resistance on daily chart

With US-China trade relations set to sour even further, that's putting a bid in the dollar while also leaving the Aussie offered at the same time. China announced over the weekend that it was pulling out from all future trade talks with the US in the wake of the recent decision to impose economic sanctions on a number of Chinese officials. The diplomatic scuffle is over China purchasing jets and missiles from a Russian arms exporter subject to US sanctions.

The Bloomberg Commodity Index, which tracks the performance of 22 major commodity futures, rose from the ashes this past week. The 2% gain occurred after some early weakness after the US announcement of additional tariffs on $200 billion worth of Chinese imports.

Commodities remain under pressure from uncertainty surrounding the US’ trade dispute with the rest of the world and the continued weakness seen across emerging market stocks, bonds, and currency markets. These developments have resulted in the Bloomberg Commodity Index losing close to 9% since its early June peak while sending it towards its lowest weekly close in more than a year.

Currencies

Upbeat NFP report supports USD

American wages climbed in August by the most since the recession ended in 2009 and hiring rose by more than forecast, keeping the Federal Reserve on track to lift interest rates this month and making another hike in December more likely. Average hourly earnings for private workers increased 2.9 percent from a year earlier exceeding all estimates and the median projection for 2.7 percent.

A consortium composed of Novus Aviation Capital, Development Bank of Japan Inc., NORD/LB Norddeutsche Landesbank and The Boeing Company has launched Cedar Aviation Finance (CAF), a new junior debt fund designed to provide airlines and lessors with higher loan-to-value financing for the acquisition of Boeing manufactured aircraft. The fund will be managed by Novus and will provide junior and mezzanine loans to bridge the gap between equity and senior debt.