News


Via ING’s outlook for the week ahead, strong words on what is weighing on the AUD

While a soft Australian jobs release has dented the Australian dollar, the real source of menace remains US policy. 

  • On the monetary side, higher short-term US rates continue to weigh on high-beta commodity currencies, 
  • while on the trade side, the follow-through of US tariffs on Chinese imports is a particular blow for the trade-sensitive AUD. 
  • In a quiet week for global markets, we suspect the latter will be the prevailing narrative – and this doesn’t strike us a particularly conducive risk-taking backdrop. 

The June RBA minutes (Tuesday) – as well as Governor Philip Lowe’s participation at the ECB’s Sintra conference (Wednesday) – are likely to be non-events for the AUD. 

Look for the pair to remain contained in the 0.7400-0.7600 range in the absence of any further directional catalysts.



Source link

Articles You May Like

How Trump’s attack on Fed independence could backfire and see higher US rates
House of Commons rejects amendment 80 to trade bill by 314 to 295
One big risk to the Canadian economy has faded
EUR/USD USD/JPY trade Best Forex Trading System 17 JULY 2018 Review -forex trading systems that work
Powell says wide range of wage measures have moved up

Leave a Reply

Your email address will not be published. Required fields are marked *