Author: Dennis Li
The AUD continued its rally Friday night and opens this morning at 0.7430 against USD.
The first round of trade war between the world’s two biggest economies has started, taking effect last Friday 6th July with $34B in both Chinese and $34B in US goods. Markets expected this to happen and have had little volatility. It looks like retaliation may be on the cards from the US and China may use the Yuan to retaliate against potential escalation of a trade war.
Better-than-expected non-farm payroll from the US offset some of the impact from tariffs to the USD, however the unemployment rate edged 0.2% higher, to 4%.
Sterling hit a two-week high above 1.330 against USD as May secured a cabinet agreement for her Brexit plans in creating a UK- EU free trade area. AUDGBP is currently trading near 0.5580 level.
German industrial production lifted 2.6% mom far stronger than consensus. This suggests Eurozone growth will rebound and the downturn in Q1 was temporary.
Oil still remained sitting near its highest level pushing past 75 dollars per barrel. With a struggling relationship between Iran and the US, Iran is now seeking for EU support for its stake on its nuclear program agreement.
It is due to be another quiet week during our time zone for market data, all eyes on announcements during the evening/night, market orders can be used to get these moves.
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