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A heavy data week amid intensifying global trade tensions

Published September 3, 2018

Author: Dennis Li

With the market’s risk appetite decreasing after the US-Canada trade talks ended on Friday with no deal to renew the North American Free Trade Agreement, the AUD/USD fell by 1.23% to a 20-month low. The break below support at 0.7200 was swift and now a test of the next major support at 0.7150 appears inevitable. Meanwhile, the AUDEUR also stumbled by a further 0.43% and broke through its support level of 0.6200 last Friday. A heavy data week to start the month with Retail Sales today, RBA rate decision tomorrow, GDP on Wednesday and Trade Balance on Thursday. With global trade tensions continuing to escalate, the data releases this week may give investors a clearer picture of the direction of the Aussie.

  • The US consumer sentiment fell to a seven-month low in August as households worried about rising prices amid strong economy and trade tensions between the US and its main trade partners.
  • The EU inflation slowed in August amid the fear that the trade disputes with the US may be intensified.
  • Growth in China’s manufacturing sector picked up unexpectedly in August, offering some buffer for its slowing economy amid a bitter trade war with Washington.
  • Japan’s factory output fell for a third straight month in July due to slowing exports of cars and steel compounded by global trade tensions that would hurt the export-reliant economy.