img AUS
img NZ
img CDN
img US
Call us now: 1800 874 942
imgOnline Dealing Login

US inflation continues to weaken …

Published June 13, 2019

Author: Nicholas Cork

The AUD drifted lower overnight as tensions can’t seem to ease on the trade front after Trump swung focus back onto the Nord Stream 2 gas pipeline project in Europe, threatening sanctions against it and also warning Germany not to rely on Russia for energy. Some support was found after Trump said that he had a “feeling” that a U.S.-China trade deal could be reached, although he did comment that “It’s me right now that’s holding up the deal, and we’re going to either do a great deal with China or we’re not going to do a deal at all.” No confirmation of any sideline meting with China as yet at the G20……

After the Chinese data yesterday was as expected, AUD remained range bound until the NY session when the combination of mixed trade news and US inflation missing its target saw a flight back to USD, and AUDUSD consequently drifted down towards 0.6925. US yields slipped in anticipation of a ‘lack-of-inflation’ led rate cut, and equities also tempered any further gains.

Today’s highlight likely to be the AU employment release at 11.30 am, and Chinese reports their Foreign Direct Investment where the breakdown of FDI into China from the United States will be examined – it rose 24% in the first four months of 2019…

Keep an eye on AUDcross rates as they drift towards important support levels as this may be the catalyst for another AUDUSD move…. see chart below …