Global Themes

AUD

Aussie nears one-month lows as Dow selling returns

The AUD’s recent run lower continued overnight as heavy selling in US and European stockmarkets pressured the local currency.

In the US, worries about the fate of US-China trade talks hurt stocks. This followed news US President Trump and Chinese President Xi would not meet this month and sparked fears a trade deal would not be completed by the 1 March deadline.

The Dow Jones fell 0.9%.

In Europe, the German DAX fell 2.7% after German industrial production fell for the fourth-consecutive month while the European Union cut growth forecasts.

Lower

The AUDUSD fell 0.1%.

The AUDJPY dropped 0.2% while the AUDGBP fell 0.1%.

The Aussie was higher versus the euro and NZ dollar after both currencies were hit by poor economic data.

RBA

Locally, the recent focus on the Reserve Bank of Australia continues today with the RBA’s Statement of Monetary Policy due at 11.30am AEDT.

This detailed update on the Australian economy and RBA thinking might have only moderate impact after Governor’s Lowe’s speech on Wednesday sent the AUD sharply lower as the central bank opened the door for potential rate cuts.

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