Under the closure of banks in both Tokyo and North America alike in holiday, currency markets began a very slow and exacerbated by the fact that US lawmakers did not reach agreement on debt ceiling deal with October 17.
Although negotiations continue in the Senate, the House is not yet an agreement on the budget of the United States with Democrats refused to accept the original terms for the passage of the budget as they bargain for more spending. There seems to be a case of cohesion in the market, as it seems that investors are still convinced that policy makers in the United States will not allow access to disability and retardation of its obligations.
With Republicans clearly stands now on the defensive after being abandoned for almost every negotiating demands, increased the chances of reaching an agreement. However, the chance to touch the Democrats advantage in their hands now, but there are still three days before reaching the deficit so that the chance of reaching a solution to the US budget crisis and the debt ceiling is still high.
On the economic front, the only economic data so far are the Chinese trade balance data on weekends and which disappointed the market by reading the 15.2 billion compared with expectations of a reading of 25.2 billion. Exports declined unexpectedly by-0.2% against expectations of an increase of 5%. The decline in exports significantly supported by falling trading volume throughout the European Union, Hong Kong and Taiwan. But some of the decline in exports was due to falsifying data in 2012 and 2013, double the number of exports to Hong Kong before authorities cracked down on the practice.
Although China's trade balance data, the Australian managed to ignore this news and bounced from lows at the beginning of the trading session 9422 Asian Asia, bringing circulation to 10220 with mid trading session in London. There was an encouraging sign of this is the continuing demand for iron ore, indicating that export demand in Australia and is likely to remain relatively stable.
Despite the dramatic decline in China's trade balance data worrying however indicates that the global demand, after it showed some signs of life in Q2 of this year could dip again. This only reinforces the importance of a negotiated settlement in the US budget process, causing the stalemate in Washington is already damage consumer confidence and weak final demand likely to equal by companies and consumers await resolution.
Currently the market is still in a wait-and-see mode as they focused all eyes on Washington, DC. Although the pace of trading remained calm, but volatile rates may increase at any time if the likely probability of default.
