The Australian Dollar remained relatively unchanged in overnight trading, opening this morning at 0.7417. The Aussie managed to hold its gains for much of yesterday’s session, only falling below the key 0.74 handle at the close when it touched 0.7388. Despite the setback, commodity currencies were stronger across the board, and the Aussie was no exception. The AUD recovered strongly to hold above the key 0.74 handle to start the Thursday session.
Market volatility remained mostly suppressed in overnight trading with trade tensions again taking the spotlight. President Trump firstly confirmed that there would be a 25% tariff on $16b worth of Chinese imports implemented on August the 23rd. Initially, markets took the news in its stride as the report was widely expected, however, there was a general softening across the board. Commodity currencies then moved higher against its counterparts after stronger than expected Chinese trade data, ultimately leaving the market in a tenuous, risk-off environment.