img AUS
img NZ
img CDN
img US
Call us now: 1800 874 942
imgOnline Dealing Login

Aussie rallies on proposed new round of Sino-US trade talks

Published September 13, 2018

Author: Dennis Li

As the Trump administration reached out to China for a new round of trade talks, we saw the Aussie rally broadly against  major currency pairs overnight. The AUDUSD gained almost 100 points overnight, up by 1.13% while the  AUDEUR bounced up above key support of 0.6150. AUDCNY and AUDGBP were also up by nearly 1% overnight respectively.

  • The USD fell against a basket of main currencies following a report that senior US officials recently sent an invitation to China to hold another bilateral trade meeting.
  • US manufacturer inflation fell unexpectedly in August recording their first drop in more than 1 year as declines in the price of food and a range of trade services offset an increase in the cost of energy products.
  • EU industrial production dropped in July for a second consecutive month and by more than expected which could possibly lead to an economic slowdown of the bloc in Q3.
  • Chinese stocks have lost more than a fifth of their value YTD on concerns that rising US tariffs on Chinese imports could hurt corporate earnings.

Despite the surprise dip in US producer prices data (PPI), overall inflation is steadily rising and the Fed is on track for the third rate hike later this month. Meanwhile the ECB and Bank of England are both holding a policy meeting on Thursday and are widely expected to leave interest rates unchanged.

US CPI tonight and Australian employment data today at 11.30am.