Aussie Recovers on China Fixing; Oil Rebounds
AUGUST 08, 2019
While the greenback experienced some volatility overnight, the dollar opened this morning slightly stronger against most of its rivals, safe the Australian dollar.
The ongoing trade dispute between China and the United States experienced some rare calm overnight after China fixed the yuan rate a touch stronger than most expected.
The economic docket is light today with only weekly jobless claims set to hit the wire. However, there are a number of other economic indicators we will be keeping an eye on. The yield on the 10 and 30-year treasury yields fell to the lowest levels of the year, giving investors a warning sign of a potential economic downturn. The price of oil, gold and even bitcoin will be worth watching over the next week or longer.
What to Watch Today…
- No major events scheduled for today.
Complete Economic Calendar can be found here.
The Canadian dollar has been facing a series of losses as the price of oil has come under serious pressure over the past week. Crude oil hit a seven-month low and entered a bear market yesterday. However, oil experienced somewhat of a rebound overnight allowing the “loonie” to halt its recent string of losses. Multiple news organizations report that Saudi Arabia has called other oil producers to discuss a possible coordinated response to the recent weakness.
The Australia and New Zealand dollars took full advantage of the trade calm and gained against the American dollar. The Australian dollar touched a 10-year low against the greenback earlier this week before recovering overnight. Aussie found added support as data showed Chinese exports expanded more than expected in July. The trade dispute is far from over as the two sides continue to retaliate against each other so the Aussie and Kiwi gains are likely the result of profit-taking near multi-year lows. Another tweet or retaliation is likely to send each of the Antipodean currencies lower.