• Australian Dollar (AUD) rebounds after Ctrip looks to delist from Nasdaq and despite soaring coronavirus numbers in the state of Victoria
  • CPI data expected to show that Australia experienced deflation in Q2
  • US consumer confidence expected to decline as recovery in jobs market stalls
  • A dovish tone is expected from the Federal Reserve tomorrow

The Australian Dollar US Dollar (AUD/USD) exchange rate has pared earlier losses and is now trading back at the flatline. The pair dropped to a low of US$0.7114, before pushing up to a session high of US$0.7177. At 13:15 UTC, AUS/USD is finding support around the familiar level of US$0.7150.

The Australian Dollar, also known as a China proxy, came under pressure in early trade following reports that Chinese travel firm Ctrip is looking to delist from the Nasdaq in part due to escalating US – Sino tensions. This comes after both the US and China closed consulates over the past week amid growing distrust between the two powers.

The Australian Dollar went on to recover despite the mood in the market remaining downbeat and despite rising coronavirus cases in Australia. The state of Victoria recorded the largest number of daily covid cases so far. Melbourne, the second largest city in Australia remains in lockdown.

Looking ahead investors will focus on Australian inflation data which is expected to show that Australia experienced record deflation of -2% quarter on quarter in the months April – June. Inflation as measured by the consumer price index is expected to decline as the coronavirus lockdown crushed demand for a range of both products and services.

The US Dollar started on the front foot but has since pared gains as investors look ahead to the Federal Reserve monetary policy meeting. Federal Reserve officials have made it clear that they are willing to see inflation rise above target before they look to hike rates. This dovish approach could keep the US Dollar under pressure.

US consumer confidence is up next. Analysts are expecting sentiment to fade in July after rebounding in June. However as the recovery in the labour market shows signs of stalling, confidence will also struggle. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.