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Tariff tensions ease

Published August 20, 2018

Author: Dennis Li

As China-US trade tensions eased slightly we saw the Aussie rally by 0.94% and break through and remain above 0.7300 against the USD throughout the weekend. With less significant economic data for the week, investors’ focus will turn to the trade talks between China and the US later this week prior to the new round of tariffs taking effect on Thursday 23rd August.

  • RBA governor Philip Lowe made an explicit statement on Friday for rates to remain at record lows for some time yet as inflation stays below its 2-3 percent target while unemployment edged closer to its full employment target of 5%.
  • According to the Trade Minister, the Australian government expects to reach free trade agreements with Indonesia and Hong Kong by the end of 2018
  • Canada’s inflation surged to its nearly seven-year high of 3% in July, raising expectations that the Bank of Canada might raise interest rates the fifth time this year as soon as next month.
  • Qatar and Turkey’s central banks have signed a currency swap agreement to provide liquidity and support for financial stability.