The Australian Dollar is bounding higher versus its US counterpart, recouping some losses from the previous session. On Monday, the Australian Dollar US Dollar exchange rate settled -0.6% at US$0.6489.<\/p>\n
At 15:00 UTC, AUD\/USD is trading +0.5% at US$0.6518. This is just off the top of the daily traded range of US$0.6432 \u2013 US$0.6536 as US \u2013 Chins trade tensions ease and following weak US inflation.<\/p>\n
China has announced a new list of 79 US products which will no longer be eligible for trade tariffs, which were imposed at the height of the trade war between the two powers. The move comes amid continued pressure from the US on Beijing to increase imports in line with the US \u2013 China Phase 1 trade deal.<\/p>\n
Earlier in the session, fears of elevated tensions between US and China had weighed on the Aussie Dollar. However, these concerns have eased across the session, boosting demand for the perceived riskier and Chinese proxy, Australian Dollar.<\/p>\n
Trade is expected to remain in focus for Aussie dollar traders after China halted buying red meat from some Australian abattoirs, in what some analysts consider to be a politically motivated move. Investors will continue to monitor the situation for signs of rising trade tensions.<\/p>\n
Looking ahead, the closely followed Westpac consumer confidence data will be in focus. Analysts are expecting another dire reading reflecting the lockdown period.<\/p>\n
The US Dollar is trading on the back foot as data revealed that US inflation dived in April. Prices for just about everything besides food dropped at the fastest pace since the 2008 Financial crisis.<\/p>\n
The consumer price index for April was the first to fully capture the lockdown effects on the economy and the 60% drop in the price of oil.<\/p>\n
As demand for goods evaporated, prices plunged. CPI printed at -0.8, in line with expectations and a steep acceleration from March\u2019s -0.4% decline.<\/p>\n
Core inflation which excludes more volatile items such as food and fuel fell -0.4%, recording its biggest decline since the index began in 1957 and dragging on the US Dollar.<\/p>\n
Looking ahead, several Federal Reserve policy makers are due to speak. Investors will be listening closely for clues as to how quickly they see the economy recovering.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Australian Dollar is bounding higher versus its US counterpart, recouping some losses from the previous session. On Monday, the Australian Dollar US Dollar exchange rate settled -0.6% at US$0.6489. At 15:00 UTC, AUD\/USD is trading +0.5% at US$0.6518. This is just off the top of the daily traded range of US$0.6432 \u2013 US$0.6536 as […]<\/p>\n","protected":false},"author":163946597,"featured_media":3625,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1547,1381],"tags":[1540,1541,1387,1569,1397,1398],"class_list":{"0":"post-100006","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-aud","8":"category-usd","9":"tag-aud","10":"tag-australian-dollar","11":"tag-inflation","12":"tag-trade-tensions","13":"tag-us-dollar","14":"tag-usd"},"acf":[],"yoast_head":"\n