AUD received further support this week from the US-China deal which is set to be signed soon by both parties. The deal looks like a completed one and when pen meets paper, the global economy looks poised to rise, of which AUD will surely benefit. However, some analysts are suggesting that the AUD is lacking drive as investors adjust to 2020 growth and trade outlooks. The RBA’s rate cut decisions for 2020 are still weighing heavy on the Aussie Dollar. Investors will be hoping for positive news from this Thursday’s upcoming manufacturing data PMIs.
AUD Hoping for the Signing Ceremony as Soon as Possible for the US-China Deal
For months the trade deal between the US and China has dominated headlines in the trading world, and rightly so as the global economy is likely to rise bringing with it many in the market like AUD who has close trade ties with China. Both US President Trump and Chinese officials have confirmed that a ‘Phase One’ deal has been agreed on and that the deal will be signed in due course. Investors are hoping that this signing process will happen sooner than later to start the New Year off in good stead.
Upcoming Manufacturing PMIs Will Determine AUD’s Next Directional Shift
There is little data to be released before the New Year arrives, which means that today is likely to be a slower day for the Aussie Dollar. But this Thursday will see the release of the Australian manufacturing PMIs for the month of December. Investors will be hoping that the figure will build upon the previous months number and boost AUD with a positive turnout. Should the figures beat projections, then AUD will likely rise and edge against its major rivals like GBP.
RBA Interest Rate Decision Weighs Heavy on AUD Going Forward
The RBA’s recent dovish stance has weighed heavy on AUD in recent weeks. With their final meeting of 2019 opening the door to further cuts in 2020, AUD fell accordingly. Investors will be hoping that Thursday’s manufacturing data will be positive enough to alleviate some tensions from the RBA’s potential cuts which have investors worried.
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