Aussie jumps 0.65% as the US delays latest round of Tariffs
|AUD - Australian Dollar
The Australian Dollar rose 0.65% overnight, tracking a resurgent Chinese Renminbi higher. Opening this morning a touch below 0.68 at 0.6798, the Aussie traded on broad global issues last night amidst a quiet domestic calendar. It was again Trade and Hong Kong that drove global markets as Trump kicked off the American session with somewhat of a compromise, delaying the imposition of the 10% tariffs until mid-December. Markets reacted almost immediately with the Aussie in particular outperforming the majors on any sign that a thawing of trade hostilities may be on the table. Nevertheless, Trump also noted that China has shifted troops to the Hong Kong border which dampened the positivity.
Moving into Wednesday, Australia is set to enjoy a slightly more interesting domestic calendar with the quarter on quarter wage price index set for release. The RBA has made no secret that unemployment and wage increases are critical to their interest rate decisions which will only add to the importance of this release. Otherwise, all eyes will also look to China for their industrial production, retail sales and fixed asset investment numbers.
Key Movers
Overnight, the US Trade Representative announced that they would delay the 10% tariffs on some consumer goods until mid-December. President Trump added that this was aimed to coincide with the Christmas Season and in effect, shielded consumers from higher prices on consumer goods for this coming Christmas. Adding to the positivity in global markets were reports that discussions between US Representative Lighthizer and Chinese Vice Premier Liu had resumed after they initially faltered which raises the chance of negotiators meeting in the US in September. The announcement had an almost immediate effect with Safe Haven currencies, the Japanese Yen and Swiss Franc, bearing the brunt of the shift in risk sentiment with the Yen falling 1.3% and the Franc falling 0.7%. On the other side of the coin, the Chinese Renminbi rose 1.25% and the Aussie rose 0.65%, supporting by improved risk appetites.
Expected Ranges
AUD/CAD: 0.8944 - 0.9012 ▼
AUD/EUR: 0.6045 - 0.6112 ▼
GBP/AUD: 1.7703 - 1.7779 ▼
AUD/NZD: 1.0490 - 1.0552 ▲
AUD/USD: 0.6741 - 0.6839 ▼
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.