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Currency Market Analysis

Dec 03, 2019 | Currency Market Analysis

Global Themes

Greenback down on data, trade tensions

The US dollar was weaker overnight as it was hit by a series of negative events including new trade tensions with Argentina and Brazil.

Importantly, US President Donald Trump again signalled his unhappiness with the stronger US dollar saying both Argentina and Brazil had allowed their currencies to weaken.

President Trump announced new tariffs on steel and aluminium imports into the US from Argentina and Brazil.

This news, along with the poor US data, with US manufacturing activity slipping further into contraction, pressured US shares. The USD weakened as well.

AUD jumps

The commodity currencies like the Australian and New Zealand dollars were both stronger.

The Japanese yen also gained.

RBA on hold

The Reserve Bank of Australia meets today with the market expecting the local central bank to stay on hold.

According to bond markets, there is a less than 10% chance of a rate cut today.

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