Australian Dollar US Dollar (AUD/USD) Exchange Rate Rises as Australian Consumer Expectations Leap Higher

AUD/USD Exchange Rate Rises as Chinese Exports Increase above Expectation

The Australian Dollar US Dollar (AUD/USD) exchange rate is up today and is currently trading around $0.7105 on the inter-bank market.

The ‘Aussie’ (AUD) rose against the US Dollar (USD) following the release of the Australian consumer inflation figures for February, which increased above expectation to 3.7%.

Today also saw the publication of the Chinese exports figures for January, which soared to a better‑than‑expected 9.1%.

However, these gains were clipped by the fall in Chinese imports figures, which were down by 1.5% against last year.

US Dollar traders, meanwhile, will be awaiting the publication of the US retail sales figures for December today, which are expected to decrease.

These will be followed by the publication of the US PPI figures – excluding food and energy – which are also expected to drop.

USD could rise, however, if the printing of the US initial jobless claims figures show any signs of bullishness.

AUD/USD Exchange Rate Increases as US-China Trade Talks take Positive Turn

The Australian Dollar (AUD) benefited from upbeat comments made by the US Treasury Secretary, Steven Mnuchin, who said he is ‘looking forward’ to US-China trade talks in Beijing today.

This comes following US President Donald Trump’s comments that he would hold off on tariffs until progress had been made on US-China trade talks.

Trump also said that there could be a possible extension to the 1 March ‘trade truce’ deadline, which has buoyed market confidence in the risk-sensitive Australian Dollar.

USD/AUD Exchange Rate Slips as Investors Await Trump Signing Compromise Bill

The US Dollar (USD) has weakened against the ‘Aussie’ (AUD) today as traders await Donald Trump to step forward and sign the compromise immigration bill today – a day before a government shutdown would occur if a compromise is not forthcoming.

Trump recently commented:

‘We’re going to look at the legislation when it comes, and I’ll make a determination then.’

Donald Trump has also recently stoked controversy by demanding California return $3.5bn over a ‘disaster’ high speed train project, this has been interpreted by some as the president searching for funding for the controversial Mexican border wall.

Trump tweeted:

The ongoing political tussles in the US are causing many USD investors to remain cautious, as there is no guarantee that the US could not see another government shutdown.

AUD/USD Forecast: ‘Aussie’ Could Soar on US-China Trade Agreement

Australian Dollar (AUD) investors will be looking ahead to the publication of January’s Chinese CPI tomorrow, with the ‘Aussie’ likely to benefit from any signs of an improving Chinese economy.

US Dollar (USD) traders, however, will be looking ahead to tomorrow’s Michigan consumer sentiment index for February, which is expected to increase – potentially seeing the ‘Greenback’ clawing back some of its losses.

The AUD/USD exchange rate will be remain sensitive to any indications that the US and China will secure a satisfactory trade deal, and with optimism running high, the ‘Aussie’ will likely soar on any signs of a trade agreement being sealed.

David Moore

Contact David Moore