Money The Australian dollar enters a holding pattern as trade uncertainty builds

05:08  07 july  2018
05:08  07 july  2018 Source:   businessinsider.com.au

Aussie dollar dips under 74 US cents

  Aussie dollar dips under 74 US cents The Aussie dollar falls against the US dollar as ongoing trade tensions spur traders to dump riskier currencies and investors to focus hopes on Fed rate rises.The Australian dollar has fallen below 74 US cents amid a rebound in the US dollar as trade tensions continue and investors focus on hopes of Federal Reserve rate rises.

EUR/USD Breaks Out of Holding Pattern on Lackluster U.S. NFP Report. Notes: In last month’s Weekly Technical Perspective on the Australian Dollar , we For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy.

The Australian dollar finished Tuesday's session flat against the greenback but weaker against th The AUD /USD hourly chart shows the Aussie is in a holding pattern ahead of tomorrow's US FOMC rate decision. Turning to Asian trade on Wednesday, there are a couple of data releases that may be

The Australian dollar is seen amongst other Australian coins.© Dave Hunt/AAP Image The Australian dollar is seen amongst other Australian coins. The Australian dollar traded mixed on Thursday as a lift in investor risk sentiment was offset by festering concerns about the outlook for global trade ahead of the introduction of tariffs from the United States and China.

As has been the case throughout the week, the Aussie's moves largely mimicked those seen in the offshore traded yuan, or CNH.

Here's the scoreboard at 7am in Sydney.

AUD/USD0.7387,0.0007,0.09%
AUD/JPY81.74,0.23,0.28%
AUD/CNH4.9174,0.0164,0.33%
AUD/EUR0.6317,-0.0013,-0.21%
AUD/GBP0.5587,0.001,0.18%
AUD/NZD1.0878,-0.0033,-0.30%
AUD/CAD0.9699,-0.0003,-0.03%

Aussie dollar continues slide against US dollar

  Aussie dollar continues slide against US dollar The Australian dollar is down against the US dollar which has rallied following a moderation in the Trump administration's approach to Chinese investment.The Australian dollar is lower against the greenback after a moderation in the Trump administration's approach to Chinese investment spurred the US dollar to rally against most major currencies.

The Canadian dollar edged lower against its U.S. counterpart on Tuesday, pulling back from an earlier 11-day high as NAFTA trade pact uncertainty offset higher oil prices and stronger-than-expected domestic wholesale trade data.

The Impact of Tariffs and Trade Wars on the US Economy and the Dollar . Put your questions to our experts in real-time Q&As. Register now Want to hold off on improving your trading ? Click here to dismiss.

After meandering either side of break-even for much of the Asian session, the AUD/USD lifted in European trade, helped by strong German economic data, hawkish central bank rhetoric and signs of an easing in trade tensions between the European Union and United States.

However, after lifting to as high as .7408, the AUD/USD gave back ground in the latter parts of the session.

The minutes of the US Fed's FOMC June policy meeting to dispel that view that two rate rises are likely to be seen this year. The US non-manufacturing PMI report for June was also strong.

ANZ says domestic economic uncertainty will put more downside pressure on the Australian dollar

  ANZ says domestic economic uncertainty will put more downside pressure on the Australian dollar ANZ says the Aussie dollar won’t find support from the domestic economy, which leaves it at the mercy of the global risk environment.Specchia said the domestic economic picture is unfavourable for the Aussie, amid increasing global uncertainty from trade war threats and tightening liquidity.

The dollar held firm on Tuesday, as political uncertainty in Germany weighed on the euro, after German Trade tensions also supported the dollar against commodity currencies, like the Australian dollar , and emerging market currencies whose economies are most vulnerable to a downturn in trade .

* Dollar index holds bulk of overnight gains. * Euro weighed by political uncertainty in Germany. Trade tensions also supported the dollar against commodity currencies, like the Australian dollar , and emerging market currencies whose economies are most vulnerable to a downturn in trade .

The AUD/USD fell to as low as .7371 before recovering into the close.

  The Australian dollar enters a holding pattern as trade uncertainty builds © Provided by Business Insider Inc Turning to the day ahead, the direction of the Aussie will likely be dictated by the performance of Chinese financial markets -- especially the offshore traded yuan -- as the US readies to implement new tariffs on Chinese imports.

Proposed US tariffs on $US34 billion worth of Chinese imports are due to kick in at 2pm AEST. The tariffs will eventually be extended to $US50 billion worth of imports.

China has promised to retaliate by implementing the same amount of tariffs on US imports.

US President Donald Trump has pledged to announce additional tariffs on $US200 billion worth of Chinese imports should China retaliate, and potentially $US200 billion more should China respond to that move.

On the data front, Australia's Performance of Construction Index (PCI) will arrive at 8.30am AEST. Japan will also release labour cash earnings and household spending figures.

Beside the tariff deadline, there's also a raft of heavy-hitting economic data scheduled later in the session, headlined by US non-farm payrolls for June.

"[This] is the data highlight for today," says Rodrigo Catril, Senior FX Strategist at the National Australia Bank (NAB).

"The market is looking for 195,000 payrolls print, but NAB sees the risk for a softer print at 170,000 amid a number of indicators suggesting the trend in job growth is slowing."

Perhaps of more importance than the payrolls figure, the unemployment rate is tipped to hold steady at 3.8%. Average hourly earnings are also expected to lift by 0.3%, leaving the increase over the year at 2.8%.

Elsewhere, other data highlights include German industrial production, and Canadian trade and jobs figures, along with US trade figures for May.

China just recorded the largest trade surplus with the US on record .
<p>In what will do little reduce trade tensions between the two sides, China's trade surplus with the US jumped to $US28.97 billion, larger than the $US24.58 billion recorded in May.</p>Load Error

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