By Perry Mitchell
Overnight trade headlines out of the US sparked demand for risk assets that have been under pressure for more than a week.
The AUD began to rise alongside global stocks in response to an announcement from the US Trade Representative Robert Lighthizer. The US announced that there will be a delay on planned tariffs for some products the which including phones, computers and shoes.
Trump previously laid out plans to impose a 10% tariff on all Chinese goods worth around $300 billion annually. The delay on imposing these tariffs is set to last until mid-December post the Black Friday shopping event, giving US consumers some relief as Christmas approaches.
On the back of this, the Aussie was the best performing G10 currency yesterday. It was able to push higher with ~1% move for the day, briefly flirting with the 0.68 handle. The local unit is enjoying the optimism and the risk-on sentiment to advance higher from the update out of the US.
Locally today sees the release of Quarterly Wage Price index, markets expect that the ABS will release broadly inline with the previous print of 0.5% (q/q). Potentially the most important release for today will be Chinese Industrial Production and Retail Sales for July. Any weakness in the Chinese statistics could hurt the latest upside momentum for the AUDUSD pair.
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