Author: Dennis Li
As the new round of tariffs between the US and China kicked in on Monday, the Aussie, viewed as a proxy to global economy, edged lower across the board against its major peers. The AUDUSD dipped by 0.34% continuing to be stuck in the range between 0.7100 and 0.7300 since September. The AUDEUR fell by 0.55% at one point, testing its support of 0.6150 before recovering some of it losses overnight. Fresh concerns, more around the unpredictability of the trade wars impact on global growth than the tariffs themselves drove the markets last night. The Dow in particular after a stellar week last week gave up a lot of ground but not enough to suggest a contagion effect.
A holiday in Japan and China yesterday may have disguised the real impact on the markets with today’s opening watched with anticipation.
With trade tensions back to dominate the market sentiment, investors will also be paying attention to different central bankers’ outlook on global economic growth in speeches from ECB, BOJ, US Fed and BoE later this week.
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