Trump's Protectionist Rhetoric forces USD lower
Monday 23rd January
The Australian dollar edged higher through trade on Friday clawing back through 0.7550 as investors dissected President Trump’s inauguration speech. Trump’s 16 minute address failed to proffer a clear policy outline, instead the incumbent President opted to paint broader strokes, spruiking his America first policy but failing to delve into specifics. Trump’s focus on Protectionism concerned investors, as protectionism means a move away from trade agreements which are generally USD negative and this concern prompter renewed nervousness and another bout of USD selling allowing the AUD to hold onto gains above 0.75 and touch intraday highs at 0.7563. Attentions now turn to Tuesday domestic CPI inflation data for direction through the week ahead.