AUD: Jobs data in focus, but trade tensions dominate – ING
|Australia releases September jobs data overnight, with consensus expecting a 20k rise in employment after August’s 5k drop, ING's FX analyst Francesco Pesole notes.
AUD remains tightly linked to US-China trade headlines
"The unemployment rate is seen ticking up from 4.2% to 4.3%, though that’s unlikely to concern the RBA unless we see another weak print or a sharper rise in joblessness. For now, the focus remains on inflation, with 3Q CPI due 29 October. We think it can endorse a cut by year-end, though not as early as the 4 November meeting."
"Still, AUD remains tightly linked to US-China trade headlines, given its status as the most China-sensitive G10 currency. The overnight rally shows markets' nerves are a bit calmer, but further escalations would weigh heavily on AUD, particularly against alternative safe havens like EUR, JPY, and CHF. For AUD/USD, the reaction will hinge on whether new tariffs trigger broader pressure on US assets and the dollar."
"Assuming a conciliatory Trump-Xi meeting at the end of October, our 0.680 year-end target for AUD/USD remains plausible."
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.