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AUDEUR rallies with ECB to end bond-buying program

Published October 26, 2018

Author: Dennis Li

Overnight we saw the AUD recover nearly all of its losses on Wednesday while the rally was limited to the recent resistance of 0.7100 against the USD. Both the AUDEUR and AUDGBP hit its three-and-half-week high after the ECB on Thursday announced to keep interest rates unchanged as widely expected and stuck to its plan to end its huge bond-buying program by the end of 2018, even as the growth outlook continues to darken and political turmoil in Italy overshadows the currency bloc. EUR interests rates are unlikely to rise for a while yet.

  • US business spending on equipment remained slow in September and the goods trade deficit continued to widen as the increase in imports outpaced a rebound in exports, suggesting modest economic growth in Q3.
  • US milk producers asked the government to increase aid payments to the industry to offset losses from foreign tariffs, saying dairy farmers have lost more than $1 billion in income since May.
  • Senior official from 12 countries gathered in Canada on Thursday to find ways to reform the World Trade Organisation (WTO) and address recent action from the US which is threatening the body’s future.
  • Chinese Premier Li Keqiang said on Thursday that China and Japan should safeguard free trade and anchor global growth as Japan’s prime minister arrived in Beijing amid trade friction with the US. The two biggest economies in Asia are set to sign around 50 deals on Abe’s visit according to a draft document.