According to RIA and Interfax news agencies, Russian Energy Minister Alexander Novak today said that Russia's oil output cuts in August will be slightly below those agreed with OPEC+.

"OPEC and non-OPEC countries will discuss the deal and the market situation at the Monitoring Committee meeting on September 12," Novak announced. "Russia is aiming for full compliance with the deal despite a slight increase in output in August."

Crude oil prices came under pressure on these comments and the barrel of West Texas Intermediate was last seen down 2.5% on the day at $55.20.

  • The intraday slide finds decent support just ahead of the 0.6700 handle.
  • The USD bulls seemed rather unimpressed by Friday’s US macro data.
  • Trump’s latest criticism over the Fed’s policy stance remained supportive.

The AUD/USD pair built on its goodish intraday bounce and turned positive during the early North-American session, hitting fresh daily tops around the 0.6740 region in the last hour.
The pair extended this week's pullback and lost some additional ground on the last trading day of the week in reaction to disappointing Australian housing data, albeit managed to find decent support just ahead of the 0.6700 round figure mark.

USD retreats from multi-week tops

The uptick picked up some pace during the early North-American session following the release of unimpressive US macro data, which failed to assist the US Dollar to preserve its early gains to four-week tops – levels just above mid-98.00s.
The greenback was further weighed down by the US President Donald Trump's latest criticism about the Fed's monetary policy stance, which seemed to be one of the key factors behind the latest leg of a sudden rise of around 20-pips in the last hour.
It, however, remains to be seen if the pair is able to capitalize on the recovery move or meets with some fresh supply at higher levels amid persistent trade uncertainties, which tend to weigh on the China-proxy Aussie.

Technical levels to watch

  • Trump administration's trade policy weighs on market sentiment.
  • US Dollar Index edges lower with initial market reaction.

In the final version of its Surveys of Consumer, the University of Michigan lowered the Index of Consumer Sentiment to 89.8 from 92.1 reported in the previous estimate.

"The Consumer Sentiment Index posted its largest monthly decline in August 2019 (-8.6 points) since December 2012 (-9.8 points)," noted Richard Curtin, Surveys of Consumers chief economist. "The 2012 plunge reflected widespread fears of being pushed off the “fiscal cliff” due to rising taxes and falling government spending. The recent decline is due to negative references to tariffs, which were spontaneously mentioned by one-in-three consumers."

The initial market reaction dragged the US Dollar Index below the 98.50 mark but the selling pressure faded away quickly. As of writing, the index was posting small daily gains at 98.49.

US President Trump continues to comment on the Federal Reserve's monetary policy on Twitter.

"If the Fed would cut, we would have one of the biggest stock market increases in a long time," Trump argued. "Badly run and weak companies are smartly blaming these small tariffs instead of themselves for bad management and who can really blame them for doing that? Excuses!"

Markets ignored these comments and the US Dollar Index stays flat on the day a tad below the 98.50 handle.

  • Wall Street's main indexes extend rebound on Friday.
  • Industrial and material shares lead winners in early trade.
  • Defensive sectors stay in negative territory amid strong risk appetite.

Major equity indexes in the US started the last day of the month in the positive territory as investors continue to price the rising hopes of the US and China reaching a trade deal before allowing the conflict to escalate any further.

As of writing, the Dow Jones Industrial Average and the S&P 500 were both up 0.5% on the day while the Nasdaq Composite was adding 0.4%. On a weekly basis, these three indexes are all set to gain more than 3% to post their largest weekly gains since the first week of June.

Among the 11-major S&P 500 sectors, the trade-sensitive Materials and Industrials both rise around 1% to lead the rally while the defensive sectors, Real Estate and Utilities post small losses to confirm the upbeat market sentiment.