The markets opened on Monday to the news that the United States, Mexico and Canada managed to agree on a new deal. The new trade deal replaces the North American Free Trade Agreement (NAFTA) and is now called the United States-Mexico-Canada Agreement (USMCA) deal. The deal is said to give greater access to the U.S to Canadian dairy markets in return for allowing extra imports of Canadian cars.
Economic data from the U.S. was slightly. Construction spending was seen rising less than expected August. Official data showed that spending on construction rose just 0.1% in August on a month over month basis.
The ISM’s manufacturing PMI showed the index easing to 59.8 in August compared to 61.3 in July. The data also missed estimates of 60.1.
However, the USD managed to close on a high note, maintaining the gains from last Friday.
The day ahead will be marked by the RBA’s monetary policy meeting. No changes are expected to the interest rate which stands at 1.50%. The European trading session is relatively quiet. Spain will be releasing its unemployment change followed by the construction PMI data from the UK.
The median estimates put the activity in the construction sector to ease slightly to 52.8 from 52.9.
Later in the evening, the NY trading session will see the Fed chair, Jerome Powell speaking.