EncoreFX’s daily market updates are written by our experienced and professional dealing team.
By George Hopkinson
The AUDUSD tested the 0.71 figure overnight and has consolidated at the figure for today’s domestic open. Risk-on sentiment in Asia and on the commodity currencies has seen fresh buying interest in the AUD. The AUD is the obvious benefactor of higher iron ore prices.
The Trump-Xi meeting looks like it has been pushed back to June. China has been pressing the U.S. for the meeting to be during a formal state visit to the White House rather than at Mr. Trumps Mar-a-Lago resort in Florida.
Japan’s exports slump again on weak external demand, causing headaches for the BOJ.
In the UK, PM Theresa May is facing roadblocks from the Speaker of the House of Commons, John Bercow. He says he will not allow a third vote on the ‘same’ Brexit proposal from the Prime Minister. Mrs. May has previously threatened that not backing her deal will cause delays to Britain leaving the EU.
Domestically, the AUD will be looking towards the RBA’s Monetary Policy Statement to search for clues to interest rate moves in 2019.
Chart Source: Reuters
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