AUD – Australian dollar
It’s Trump’s first day and so far, the markets have seen some relief with tariffs held off so far. Trump’s team have mentioned that they will perform further studies into policies and trade relationships with China, Canada, and Mexico. Consequently, the AUD has risen 1.1% from yesterday’s close, to around US$0.6270 versus the USD. The AUD has also risen slightly versus the CHF and JPY up 0.3% and 0.6% respectively while holding steady against the EUR, GBP and CAD.
Trump has also stated that he would boost domestic oil production and rolling back some previous policies, such as pulling out of the Paris Climate Agreement while promoting fossil fuels and mineral mining. Oil futures have slid on these remarks.
Despite tariffs being held off for now, China’s President, Xi Jinping has called for China to be more proactive this year to cement their growth momentum as tariffs may be a reality. President Xi’s particular focus was for high level scientific and as well as technological reliance.
Key Movers
The USD slid broadly overnight on tariffs being withheld and trade relationships with Canada, China, and Mexico being studied more closely. So far, this has come as a positive, with major currencies citing gains versus the USD. The AUD is up 1.1%, CAD is up 0.95%, CHF is up 0.7%, EUR is up 1.0%, GBP is up 0.9%, NZD is up 1.1% and JPY is up 0.35%.
News today includes:
- NZ: Business Service Index
- UK: Claimant Count Change, Average Earnings, Unemployment Rate
- EU: German ZEW Economic Sentiment, EU Economic Sentiment, ECOFIN meetings
- CA: CPI
Any further insights into Trump’s policy would be high impact news, as well as the Bank of Japan rate decision on Friday.
Expected Ranges
AUD/USD: 0.6170 – 0.6350 ▲
AUD/EUR: 0.5980 – 0.6070 ▲
GBP/AUD: 1.9500 – 1.9800 ▼
AUD/NZD: 1.1010 – 1.1120 ▼
AUD/CAD: 0.8920 – 0.9050 ▲