AUD sees slight bounce overnight
Friday 30 August, 2019
Daily Currency UpdateThe AUD saw a bit of bobbing during yesterday’s trading session against the USD. We saw the AUD dip to a 1 day low of 0.6718, rising to 0.6752 before settling and opening this morning at 0.6731 against the USD. The dip yesterday morning was due to the ABS Private Capital Expenditure data coming back much back lower than forecasted at -0.5%, compared to its prediction of 0.4%. It then saw a dip rise on the back of the release of the Q2 US GDP data which was revised down a fraction, to a 2% annualised rate. China data being released tomorrow morning can also have a major impact on the Australian dollar. The figures for manufacturing index will show if the Chinese economy is slowing down due to the increased tariffs with the US, and this will affect Australia as they are a close trading partner with China.
Key Moversisk assets have been boosted overnight as China calls for calm in the trade war. China Ministry of Commerce Gao Feng has advised that Beijing to will not immediately retaliated to the US’s latest tariffs, coming into effect this Sunday. The market is hopeful that this is the beginning of the end of tariff retaliation’s on both sides. In Brexit news, UK PM Boris Johnson states that they will ‘step up the tempo on new deal talks. Both sides are expected to meet twice a week, as the UK Government is looking to block a no deal. US GDP results yesterday night came back as expected at a released figure of 2.0% compared to a forecasted figured of the same. Released quarterly, it is the broadest measure of economic activity and the primary gauge of the economy’s health. In line with this, CAD GDP is scheduled to be release tonight. Expected to have a major impact on the CAD, the GDP figure is the change in the inflation-adjusted value of all goods and services produced by the economy.
- AUD/CAD: 0.8885 - 0.8990 ▼
- AUD/EUR: 0.6030 - 0.6125 ▼
- GBP/AUD: 1.7850 - 1.8250 ▲
- AUD/NZD: 1.0620 - 1.0735 ▲
- AUD/USD: 0.6675 - 0.6790 ▼