The Australian Dollar traded according to the headlines with US-China trade war news appreciably moving the AUD. Unfortunately, the news was fairly negative with the arrest of the Huawei CFO in Canada. With tensions noticeably high between the two superpowers, the Aussie Dollar succumbed and opens this morning at 0.7182.
With little on the economic calendar to drive direction the Aussie took its cues from off-shore sources. The fallout from the Huawei CFO arrest and the almost 5% decline in the S&P500 for the week saw global markets turn decidedly risk-averse. The Aussie was not spared from the sell-off, falling steadily throughout the week.
Adding to the picture was Chinese data released over the weekend that showed the trade surplus in China grew by $44.7 billion. Exports however, increased by only 9.8% and imports declined by a massive 25%. Inflation was also disappointing, down 0.3% in November and leaving the annual reading at 2.2%. The take-away from the report was a noticeable slow down for the Asian giant. The poor economic news from China, coupled with heighted tensions with the US, painted a gloomy picture for the Aussie which found little support over the weekend.
The Australian Dollar starts this week with little on the economic calendar to digest. The market will again turn to off-shore forces for direction.