The Australian Dollar can be impacted by global attitude to risk and news that Donald Trump and China are still locked in battle over their trade wars is not helping the value of the currency.
The G20 summit in Japan this weekend will be key for where this may head next, should the rift continue and both sides continue to throw more and more tariffs at each other then this could damage Australian Dollar exchange rates.
Chinese economic data has also had an impact on the Australian Dollar overnight, as inflation posted at a 15 month high last night. Poor economic data from China can have a negative impact on the value of the Australian Dollar due to the strong trading ties and the number of exports from Australia to China. Should China start to struggle then you can tend to see a ripple effect onto the Australian economy so the markets tend to move in advance of this. Chinese Retail Sales figures are released on Friday so this will be one to watch.
In terms of Australian data, we have a few key releases this week with unemployment figures out tomorrow and investors and speculators alike will also be looking out for any hints or comments from members of the RBA as to their plans for what to do next with interest rates.
There are growing expectations that we may see an interest rate cut from the RBA in the near future, and this has the potential to result in the Australian Dollar losing a little ground.
My personal view is that I feel that the Australian Dollar may weaken a little in the coming weeks due to the various points above, so if you have Australian Dollars to buy then it may be one to watch very closely, if you have Australian Dollars to sell then it may be tempting to start considering making a move on soon. Of course with all the worldwide politics going on the market and opinions can change in an instant so it is key if you are in the position where you have an exchange to carry out that you have a proactive broker on your side, with various options on offer.
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