Author: Steve Oram
The AUD has been contained for the last 24/48 hours in a slim 30 point range as trading volumes were thin with markets closed for public holidays in the United States and Britain.
The same themes remain with the market waiting for further developments in the U.S – China trade war, and U.S GDP and Consumption data due later this week. Nothing of note on the local front today, perhaps the weekly consumer confidence numbers worth a brief look to gauge public reactions since the election.
Our Aussie Dollar has seen some support from surging iron ore prices, Australia’s biggest export earner. Chinese futures for the ore climbed almost 5% last week to top $100 a tonne. Miners getting a double whammy given the Aussie is also so weak against the U.S currency.
GBP Lower After European Parliamentary Elections
The Pound lost ground yesterday as results from the European parliamentary elections saw Nigel Farage’s Brexit Party top the vote with 32%. The Conservative’s recorded less than 10%, suggesting that voters want Brexit to go ahead. Although parties supporting a second referendum received over 40% of the combined vote. It all points to the GBP remaining volatile in the coming weeks, with no clear end to the political circus looking close. The Euro was stable against the greenback amid the mixed EU election results in which mainstream parties lost ground to both centrist and extreme ones.
On his visit to Japan, US President Donald Trump said that there had been a tremendous imbalance of trade between the US and Japan and that the two countries were working to bridge the gap. Trump also acknowledged a trade announcement would most likely be announced in August, without elaborating on the details.
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