The Australia Dollar traded within its weekly range on Thursday, moving within 0.7162 and 0.7210 as the domestic news came in thick and fast. Opening this morning at 0.7196, the Aussie starts Friday relatively unchanged from yesterday’s market open, despite some movement throughout the day.
The Aussie was initially buoyed by a positive trade balance reading which saw exports increase their margin over imports. The latest figure was surprisingly higher than expected and saw the Aussie break through 0.72. These gains however were quickly unwound after ANZ, and then CBA announced they’d follow Westpac and increase their mortgage rates. The market reacted poorly to the news and plummeted to 0.7165 on the implications of the rise, despite the RBA’s lack of concern for small rate movements.
In an almost carbon copy of the previous day, off-shore forces then forced the Aussie higher to again flirt with 0.72. Well supported by a less than stellar non-farm employment reading in the US, the Aussie founds it feet in an otherwise risk-off environment as President Trump looks to impose $200bn worth of Tariffs on China. The public consultation period comes to a close shortly with the market widely expecting the additional tariffs to be announced.
Moving into Friday, the Aussie now turns to the Headlines to hear from President Trump on trade. Markets will also keep a close eye on US employment figures for direction.