AUD sees a rise following President Trump’s speech
Monday 1 June, 2020
Daily Currency UpdateThe Aussie dollar rose against the USD last trading session to open at 0.6669 gaining some traction after a speech by President Trump about China early Saturday morning. The US President has stated that the United States will move to sanction Chinese officials over what he referred to as the ‘smothering’ of Hong Kong, but did not make any mention of the trade deal between the two countries.
In terms of macroeconomic news, the Cash Rate announcement by the RBA is scheduled to be released Tuesday afternoon. Expected to stay at 0.25%, the rate decision is usually priced into the market, but it often overshadowed by the RBA Rate Statement which focusses on the future.
Key MoversCanadian GDP dropped 7.2% in March according to data released by Statistics Canada on Friday night, causing the CAD to drop almost 50 points against the USD. Owing to the COVID-19 pandemic declared by the WHO on March 11, we are expected to see further decline as Statistics Canada’s preliminary information indicates an 11% decline for the month of April.
Chinese Manufacturing PMI data released Sunday midday saw a figure of 50.6 come back indicating industry expansion, making the PMI positive for the third month in a row. It is a leading indicator of economic health, as businesses react quickly to market conditions and purchasing managers hold a relevant insight into the company’s view of the economy.
Conversely, the US will release their ISM Manufacturing PMI data midnight on Monday. Forecast rates for this are coming back at 43.5 indicating contraction.
- AUD/CAD: 0.9105 - 0.9285 ▲
- AUD/EUR: 0.5905 - 0.6100 ▲
- GBP/AUD: 1.8180 - 1.8865 ▼
- AUD/NZD: 1.0680 - 1.0860 ▲
- AUD/USD: 0.6570 - 0.6785 ▲