Global Themes

AUD

Trade Tariff’s Escalate


Trade war heats up?

The US looks set to announce a further $200 Billion in trade tariffs against China. This is an escalation of the trade war between the 2 countries, with Chinese retaliatory tariffs expected, the AUD suffered a fall on the back of this news as global trade worries weighed on the Australian Dollar.
Trump is now on his European tour with a meeting with NATO and then onto the UK scheduled.

AUD loses ground overnight.
The AUD is down broadly against nearly all currencies as a fallout from the announced tariffs, falling 0.48% against the Dollar, 0.39% against the Euro and 0.62% against the Yen.

With announcements expected out of China in reprisal for the US trade actions, we could see further weakness on the horizon.

Coming Up
Today we have consumer sentiment and home loan data out of Australia, however all eyes will be on US inflation data overnight and the Bank of Canada rate decision, expected to raise by 25 basis points from 1.25% to 1.5%.
We also have central bankers from the European Central Bank and Bank of England talking, so it could be a busy night for the markets.

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