fundamental News - AUD/USD
AUD/USD stays modestly changed while taking rounds to 0.7300
amid the early Wednesday morning in Asia. The aussie pair surged to the highest
since September 02 on Tuesday as upbeat trade sentiment joined welcome
economics. However, the US dollar’s recovery moves and the pre-Fed caution seem
to limit the AUD/USD prices off-late.
Not only China’s upbeat prints of Industrial Production and Retail Sales but RBA policymakers’ cautious optimism, as conveyed via the
minutes of the September month monetary policy meeting, also helped the pair to
refresh the multi-day high yesterday.
Also helped the pair during
early-Tuesday were headlines suggesting a receding trade tension between the US
and China. Following Beijing’s extension of tariff relief to certain American
imports, the Trump administration also rolled back the previously announced ban
on some products from Xinjiang, like tomatoes and cotton.
market optimism was then carried forward as news suggested
that the scientists at the University of Pittsburgh School Of
Medicine developed a reliable antibody component to neutralize the
coronavirus (COVID-19) infection.
upbeat prints of the US NY Empire State Manufacturing Index joined
trade-negative headlines saved the US dollar from marking the third negative
day in a row. The World Trade Organization (WTO) recently ruled against the US
sanctions on China and the same may ire the Trump administration, which in turn
could trigger a fresh round of trade tensions. Also challenging the risk-on
mood is the pessimism surrounding the Brexit and
the market’s cautious mood ahead of the Federal Open Market Committee’s (FOMC)
monetary policy meeting, up for the announcement at 18:00 GMT.
than the Fed, traders may also take intermediate clues from
Australia’s Westpac Leading Index and HIA New Home Sales for August. The
housing data is expected to recover from 64.4% to 79.6% while the sentiment
gauge earlier eased to the three month low of 0.06% in July.