It’s a well-known fact that when China sneezes, Australia gets a cold. The commodity-producer country depends on its Asian neighbor to keep its economy alive, as most of its exports end up being shipped to China. The trade war between Beijing and Washington took its toll on the Australian economy, hence in AUD/USD, which fell in October to a one-decade low of 0.6670 back in October. Quite a slump considering the pair topped at 0.8135 in January 2018, shortly before the trade war started. It is hard to tell whether the RBA was more concerned – back then, or now. Indeed, policymakers needed the Aussie to be cheaper, but not at the cost they finally had to pay.
AUD/USD struggles to hold above 0.6900, eyes on US data
After posting modest daily losses on Thursday, the AUD/USD pair edged higher to 0.6912 on Friday but reversed its course ahead of the American session. As of writing, the pair was down 0.06% on the day at 0.6895.