Tech-stocks led the declines on Friday, pulling Nasdaq down by 0.87 Percent; but the Dow Jones and S&P 500 withstood the selling pressure to close higher by 0.17 and 0.06 Percent. The weakness in tech stocks could have been on worries of increased tensions between the US and China, primarily as Trump had issued orders affecting a large number of Chinese-based tech companies.
The US President has banned US citizens from having financial transactions with Tencent’s WeChat and ByteDance’s video-streaming app TikTok. Tech stocks took a hit in the next session following the dictum.
The increased tension between the world’s largest economies has brought back risk-off sentiments in the market and helped the US dollar to gain against its competitors, particularly the Australian and New Zealand Dollars. The dollar also benefited from the better-than-expected monthly jobs reports from the US.
The comeback in the US dollar weakened the gold as well as cycle-sensitive commodities like crude oil and copper.
Australian dollar might garner attention due today as the Chinese CPI data is expected to come in at 2.6 Percent reading for July and the PPI is seen at -2.5 Percent – better than -3.0 Percent last time.
Sino-US relations might overshadow the data flow for today.
AUD/USD had fallen-off recently, with the most significant one-day decline in almost a month, from the critical resistance at 0.7295. A close below 0.7181 can test the pair’s strength in the crucial area between 0.7018 and 0.6911. The continuation of the current uptrend AUD/USD or the start of a broader pullback would depend on the pair’s behaviour in this zone.
AUD Index Today - last 90 days
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