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The AUD slightly higher

Published September 10, 2019

Author: Brett Gordon

 

The AUD rallied during yesterday`s trading session, reaching towards the 0.69 level. The rally may not continue for the longer-term as the US/China trading situation only gets worse.

The EUR could remain rangebound until Thursday when the European Central Bank releases its interest rate and monetary policy decisions. Investors are expecting the ECB to trim its already negative benchmark rate while implementing additional stimulus, which may include quantitative easing.

The GBP pushed higher overnight on the release of June’s GDP data showing it expanded 0.3% and beating forecasts of a 0.1% increase.  The positive data pushed back fears of any immediate recession in the UK, however the political outlook remains uncertain.

News of a bill blocking a no-deal Brexit on 31 October also saw the GBP rise.  UK PM Boris Johnson will ask parliament for a snap election which is likely be defeated in a vote which is expected on Monday.  He will then suspend parliament until 14 October.

Data to watch today is China’s Inflation and Producer Prices and the Australian NAB Business Confidence report all released at 1.30pm today