The Australian dollar is higher as trade war fears subside

LUDOVIC MARIN/AFP/Getty Images
  • The Australian dollar is rallying, helped by positive trade negotiations between the United States and China that concluded over the weekend.
  • China has pledged to help support growth and employment in the United States by increasing purchases of US goods and services. No specific details were outlined.
  • The economic calendar is quiet on Monday.

The Australian dollar is pushing higher to start the new trading week, helped by positive trade negotiations between the United States and China that concluded over the weekend.

Here’s the Aussie dollar scoreboard as at 7.45am in Sydney.

AUD/USD 0.7530 , 0.0019 , 0.25%
AUD/JPY 83.49 , 0.12 , 0.14%
AUD/CNH 4.7890 , 0.0049 , 0.10%
AUD/EUR 0.6397 , 0.0002 , 0.03%
AUD/GBP 0.5588 , 0.0005 , 0.09%
AUD/NZD 1.0861 , 0.0007 , 0.06%
AUD/CAD 0.9694 , 0.0019 , 0.20%

At .7530, the AUD/USD is currently up 0.25% from Friday’s close, assisted by relief that a trade war between the United States and China looks to have been averted, at least for now.

“This follows news that the US has effectively declared a truce in its ongoing trade spat with China,” says Ray Attrill, Head of FX Strategy at the National Australia Bank.

“A joint Sino-US statement issued from the White House on Saturday stated that China will help support growth and employment in the United States by increasing purchases of US goods and services.”

AUD/USD 30-Minute Chart

Despite a lack of specifics, the news has helped to boost risk assets in early Asian trade, something that may continue to support sentiment throughout today’s session given a quiet economic calendar both at home and abroad.

Of what releases there are, most a second-tier in nature.

New Zealand will release quarterly retail sales at 8.45am AEST, while Japanese trade figures for April will arrive at 9.50am AEST.

Later in the session, the Chicago Fed’s National Activity Index for April is the only release of note.

On the central bank front, Fed members Bostic, Harker and Kashkari are set to deliver speeches while the ECB will release its semi-annual financial stability review.

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