- US Pres. Trump says he is yet to decide on rolling back the accumulated tariffs.
- US Dollar Index gains more than 1% this week.
- RBA lowers GDP growth forecast for 2019 to 2.25%.
Despite the broad-based USD strength throughout the week, the AUD/USD pair didn't have a difficult time holding above the 0.6900 handle as the heightened hopes of the United States and China simultaneously reducing import tariffs as part of the phase-one of the trade deal helped antipodeans find demand.
US-China trade agreement not a done deal
However, with US President Donald Trump noting that he hasn't yet agreed to roll back tariffs on Friday, the AUD lost its traction and the pair slumped to its lowest level in more than a week. As of writing, the pair was trading at 0.6851, adding 0.65% on a daily basis.
Earlier in the day, the Reserve Bank of Australia (RBA) in its quarterly Statement on Monetary Policy (SoMP) reiterated that the board is prepared to ease the policy further if needed and lowered the 2019 growth forecast down to 2.25%.
On the other hand, the greenback continued to outperform its major rivals with the US Dollar Index climbing to its highest level since mid-October at 98.40. As of writing, the index was a tad below that level, adding 0.27% on the day and 1.3% on the week. The only data from the US on Friday showed that consumer confidence improved slightly in early November but was largely ignored by the market participants.
- US: UoM Consumer Confidence Index edged up to 95.7 in November vs. 95.9 expected
There won't be any macroeconomic data releases from Australia on Monday and the US investors will be observing the Veterans Day, suggesting that the market action will likely remain subdued.
Technical levels to consider
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0650 after US data
EUR/USD retreats from session highs but manages to hold above 1.0650 in the early American session. Upbeat macroeconomic data releases from the US helps the US Dollar find a foothold and limits the pair's upside.
GBP/USD retreats toward 1.2450 on modest USD rebound
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold clings to strong daily gains above $2,380
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.