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Trump’s trade war is front page news again with the latest whispers suggesting China may hit back at Trump with higher tariffs of their own if the Trump White House follows through with flagged tariff increases on Friday, U.S time. Should that be the case and we see higher tariffs on more goods, then it would be a dramatic escalation to what appeared only last week, a deal close to completion. Not surprisingly, markets remain on edge with equities, the AUD and commodities faring the worse this week amid sustained risk aversion. The USD and JPY are the classic safe haven currencies, and have performed well through the week.
AUD Under Pressure:
The AUD on the whole is down marginally and is trading just under 0.7000 on the wholesale market.
A bit of Chinese economic data is out this morning including CPI and PPI figures. Obviously Chinese data has quite an impact on the AUD and most financial markets, so a good showing here could support the AUD, a bad result could see the opposite occur.
AUD EXCHANGE RATES:
AUD/USD – 0.6960
AUD/GBP – 0.5342
AUD/EUR – 0.6213
AUD/NZD – 1.0596
AUD/JPY – 76.633
All Ords (XAO) – 6,351
Gold – A$1,832/oz
Silver – A$21.23/oz
WTI – US$62.02/barrel
DATA RELEASES TODAY:
CNY – CPI & PPI y/y at 11.30am
USD – Fed Chair Powell Speaks at 10.30pm
USD – PPI m/m at 10.30pm
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