AUD/USD Daily Forecast

Monday, Jul 09 2018

There were no data releases both from Australia and USA yesterday. Investors seem to be enjoying the relative calm over the U.S.-China trade dispute. Although the U.S. followed through on its threat to impose a tariff on $34 billion in Chinese imports on July 6, the price action indicates the news had been fully-priced into the market. Therefore, we’re not likely to see much of a reaction to the tariffs unless there is further retaliation from China, or additional tariffs from the United States.

The Australian and New Zealand Dollars are trading higher on Monday, benefiting from increased demand for higher-yielding assets and a weaker U.S. Dollar. The move is also being driven by follow-through buying related to Friday’s short-covering spike that was fueled by mixed U.S. jobs data and lowered expectations of a fourth rate hike by the U.S. Federal Reserve later this year.

Tomorrow, we would pay attention to NAB Business Confidence figures and China’s CPI and PPI figures, which are expected to increase by 1.9% and 4.5% respectively. There will be no major data releases in the US part of the session.

Figures to watch:

NAB Business Confidence (Tuesday 2:30)

China CPI/PPI (Tuesday 2:30)

AUD/USD Daily Forecast - 10 July

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