By George Hopkinson
The Australian dollar rallied overnight despite soft GDP data yesterday, the rise was mainly driven by U.S. manufacturing activity contracting in August for the first time in three years, putting pressure on the big dollar. AUD also experienced relief as data showed China’s services sector expanded at the fastest pace in three months in August. The geopolitical news overnight helped foster a risk-on sentiment as Hong Kong’s leader, Carrie Lam announced she will pull the contentious extradition bill which sparked the initial protests in Hong Kong.
In broader news, The GBP rose as concerns of a no-deal Brexit faded with British Prime Minister Boris Johnson suffering a major setback after lawmakers vote to block ‘no-deal’ Brexit. PM Boris Johnson is now calling for a snap election on 15th October.
Overall market sentiment will be key drivers for the AUDUSD ahead of U.S. economic releases and the Australian Trade Balance at 1.30pm today.
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