Business Insider Australia

The Australian dollar is higher across the board

Business Insider Australia logo Business Insider Australia 19/09/2018 2:00:00 David Scutt
© Getty

The Australian dollar rallied across the board on Tuesday, defying an escalation in trade tensions between China and the United States.

Here's the scoreboard as at 7am in Sydney.

AUD/USD0.7218,0.0038,0.53%

AUD/JPY81.09,0.80,1.00%

AUD/CNH4.9513,0.0199,0.40%

AUD/EUR0.6186,0.0041,0.67%

AUD/GBP0.5489,0.0033,0.60%

AUD/NZD1.0956,0.0044,0.40%

AUD/CAD0.937,0.0012,0.13%

So why did the Aussie rally despite the US and China both introducing new tariffs on the others imports?

David de Garis, Economist at the National Australia Bank, suggests both announcements had already been factored in by markets, leading to a bout of short covering in the Aussie following an earlier dip.

"It's a little surprising that markets have taken the news in its stride. All priced in? Perhaps," de Garis said.

"For the AUD, we would also note that while not at record shorts, positioning has been very short and the absence of more bad new news has likely contributed to its mini bounce."

As seen in the hourly chart below, the AUD/USD continues to find buyers on any dip at present.

AUD/USD Hourly Chart © SuppliedAUD/USD Hourly Chart

Whether that trend continues into Wednesday trade will likely be determined by sentiment given a quietish economic calendar.

In Australia, Assistant RBA Governor Christopher Kent will deliver a speech on 'Money - Born of Credit?' from 11.30am AEST. That will follow the latest Westpac-MI Leading Index for August at 10.30am AEST.

Regionally, highlights include New Zealand's Q2 current account, Japanese trade data for August along with the Bank of Japan's September monetary policy decision. No change is expected for the latter.

Later in the day, other releases include UK consumer and producer price inflation, Eurozone current account and construction output along with current account, housing starts and building permits from the United States.

Andy Haldane of the Bank of England and ECB President Mario Draghi are also scheduled to deliver speeches.

19. syyskuuta 2018 5:00:00 Categories: Business Insider Australia Länsiväylä Puheenaihe

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