Author: Dennis Li
The Australian dollar was little changed over the weekend staying just above the 0.74 mark against the greenback.
In its semi-annual report to Congress on Friday, the US Fed pointed to ‘solid’ economic growth and it expected to continue to raise interest rates gradually while Dallas Fed President Robert Kaplan added that he would need to downgrade his outlook if tensions between the US and its trade partners escalate. The USD continued its slide against a basket of currencies, currently the dollar index is at 94.70.
China’s trade balance reported an unexpected surplus on Friday 13th July, jumping by more than 70 percent to a six-month high of $US41.6billion but this is likely to narrow considering the impact of the ongoing trade tensions. The Chinese Yuan is steady at its record low near 6.69 against the USD with investors keeping a close eye on today’s release of Industrial Output, Retail Sales and GDP data out later today. AUDCNY started the new week at 4.9395.
Oil is currently at USD 70.78 per barrel with compromise talks in Norway with striking oil workers reaching no compromise.
Locally we have the RBA meeting minutes tomorrow and employment data on Thursday which may provide the impetus to take the AUD through current resistance or push it lower.
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