The recent performance of AUD has not been spectacular to say the least. With underwhelming performances in recent figures and pressure being applied from the US-China trade wars, AUD rate has been in a decline.
US-China Trade Talk Hopes Knocked
The trade war has been ongoing for several weeks now and has had AUD firmly in its grips. Hopes were running high on Tuesday that president Trumps speech in New York may have been optimistic and given the market a boost. However, reports from Wednesday displayed the opposite, in that his speech left the market disappoint. There was a hope that he would divulge on the China talks, but instead proceeded to set out his stall for re-election in 2020. The potential boost to the market was flattened.
AUD Looks to Jobs Data to Reinstate Optimism
Wednesday left the Aussie dollar a little in the dark as wage data was released. The figures did not increase but held steady. This resulted in little effect on AUD strength but consequently did not do any damage either. Today (Thursday 14th), traders of AUD will be eagerly awaiting jobs figures which are due to be released. Current figures have shown that the Aussie jobless rate has risen this year, with a slowing of employment growth also. Should the jobs data disappoint, it is likely to undermine AUD’s recent resilience putting further pressure on the already stretched currency.
Australian Dollar Largely Balances on the Outcomes of Unfolding News
AUD is being largely affected by current affairs. With the disappointing revelations in Donald Trump’s recent speech, the market has reacted with a pessimistic view. This is not good news for AUD who would benefit from a positive deal for China. But the US seems to have given off a feeling that they aren’t seriously invested in obtaining a partial deal with China.
Investors in AUD will also been keeping an eye on today’s job data in hope that the figures turn out positive. Recent data has not been overwhelming but has held weight in some sectors. Should a positive return occur, AUD would get a much-needed boost to lift it out of it’s current two month low. The pressure on the Reserve Bank of Australia (RBA) to cut their interest rates is beginning to pile on, but with three cuts in 2019 already, investors are worried for how this will affect the currency and its strength against others like GBP.
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