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Aussie holds key support ahead of RBA decision today

Published September 4, 2018

Author: Dennis Li

With muted trading activity yesterday owing to a US public holiday, the Aussie dollar managed to hold above support at 0.7150 and finally worked its way marginally back above 0.7200. Yesterday’s Retail sales result of 0% for July further reinforces declining confidence and spending and that a lower AUD is increasingly likely. The RBA is widely expected to leave rates unchanged with their accompanying statement the focus in an otherwise quiet trading day.

  • China’s manufacturing activity grew at the slowest pace in more than a year in August with export orders shrinking for a fifth month overshadowed by the intensifying trade wars with Washington.
  • EU manufacturing growth also slowed to a near two-year low in August amid fears of an escalating global trade war.
  • Japanese manufacturing activity expanded at a slightly faster pace in August than the previous month while a decline in export orders raised concerns about the impact of trade protectionism.
  • Global stock markets fell for a third straight day on Monday hurt by the escalation in the aforementioned trade wars and a deepening sell-off across emerging market currencies.