AUD/USD Exchange Rate Claws Back Losses as Iron Ore Prices Rise
The Australian Dollar US Dollar (AUD/USD) exchange rate has been volatile over the past twenty-four hours, and is currently trading at a rate of $0.7234 with the ‘Aussie’ making an attempt to push back against the ‘Greenback’.
Tuesday saw iron ore spot markets claw back some of their losses after slumping more than 8% at the start of this week’s session.
Figures released this morning showed that Australian construction work completed in the third quarter dropped by more than expected, from 1.6% to -2.8%, despite a predicted drop to only 1.0%.
AUD/USD Exchange Rate Slumps as Australian House Prices Fall Further
The AUD Roy Morgan weekly consumer confidence index figures were released on Monday evening, showing an increase from 117.8 to 118.6, strengthening the AUD.
Australian consumers don’t seem too affected by recent bad economic news, including the largest decline in iron ore prices in over a year – with some reports that the falls were the largest on record.
Falling house prices has also been an issue that has dented the value of the ‘Aussie’ as Australian capital city home prices are on track to fall by 0.9% in November, which is the largest decline since November 2008.
Furthermore, with the ongoing US-China trade tensions, it has been reported that the US is likely to continue on their path to slap Chinese imports with higher tariffs in 2019.
AUD/USD Exchange Rate Volatile as US-China Trade Dispute Rages On
As the trade dispute between the US and China continues, some observers claim there is light at the end of the tunnel, with White House economic advisor Larry Kudlow saying:
‘[President Trump believes] … there is a good possibility that a deal can be made, and that he is open to that.’
‘President Xi has an opportunity to change the tone and the substance of these talks. President Trump has indicated he is open – now we need to know if President Xi is open.’
AUD/USD Exchange Rate Volatile in Wake of Today’s US Data Releases
The US annualised Gross Domestic Product (GDP) is set to be released this afternoon, with the prediction that the figure is going to remain steady at 3.5%, which could mean ongoing USD strength.
Jerome Powell, chair of the Federal Reserve is set to give a speech this evening, and depending on whether his tone is dovish or hawkish, USD could push back against the ‘Aussie’ or slump further.
Australia is set to see the Housing Industry Association’s new home sales figures for October, which was reported to be 1.1% last month, and if there is an increase in this figure this will likely reflect positively in the Australian Dollar.
Further news regarding the US-China trade war is likely to cause volatility within the pairing, with any positive news of trade tensions cooling likely cause the AUD/USD exchange rate to rally.