ASX set to gain as Trump tones down rhetoric

Risk buying in Europe and the Americas continues to have a solid week and will look to support the final trading day of the week. Confidence developed as the White House signalled that a Syria attack might not be imminent and tariff threats to China were re-labeled as a negotiation.

Aussie dollar: The Australian Dollar remained largely unchanged against the US Dollar as fears of a real war are surpassing that of a trade war. The former was expected to be largely negative to Australia whereas the latter could provide a boost in commodities on the potential of supply shocks. 

From a broader perspective, the Australian Dollar has been performing well against the Japanese Yen and US Dollar. Recently, Citigroup published a buy signal for AUD against US Dollar despite recent AUD weakness against the New Zealand and Canadian Dollar with an initial target of 0.7915/90 with a possible extension to 0.8100.

Wall Street returns to the topside as Trump de-escalates: Following the Russian Foreign Ministry's comments on Wednesday that it would not wage "Twitter diplomacy," US President Trump took back to the social media platform on Wednesday to suggest that a military response to Syria might not happen "at all." Traders took kindly to the commentary, with the S&P 500 moving higher by +1.2%, the Dow Jones gaining +1.7%, and the NASDAQ adding +1.3%.

ASX: US President Trump was back waging Twitter diplomacy, suggesting that a military response against Syria may not happen "at all," providing the spark US stocks needed to push higher on the day. Australian shares were poised to open higher on Thursday by +0.4% at the time of writing.