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Currency Market Analysis

Dec 11, 2019 | Currency Market Analysis

Global Themes

Aussie lower as trade jitters hit; Fed meets tonight


• Aussie lower
• New tarrifs due on Saturday
• Fed due at 6.00am AEDT

Trade delay delayed

The Australian dollar was weaker overnight as uncertainty around the next round of US tariffs, due on 15 December, pressured the local currency.

The Aussie was hit after US chief economic adviser, Larry Kudlow, said President Donald Trump wasn’t ready to make a decision on delaying the new tariffs.

The US is due to introduce new tariffs on up to $160 billion in Chinese imports including key Christmas shopping list items like smartphones and toys.

These tariffs were earlier delayed by President Trump after being first announced in August.

Aussie lower

The AUDUSD fell 0.2%.

The Aussie was weaker in Europe with the AUDEUR down 0.4%.

The AUDGBP fell 0.2% but later rebounded after a poll showed the UK general election contest was tightening.

Fed due

The focus tonight turns to the US Federal Reserve with the US policy decision due at 6.00am AEDT.

The market pricing indicates – surprisingly – that a hike is now more likely.

The consensus is that the Fed remain on hold after recent official statements. The Fed’s updated forecasts and press conference will be key.

Also tonight, US inflation is due at 12.30am.


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