Forex Marketz Daily Forex News – Fully Markets Update
This morning, Aussie dollar traders, specifically with the benchmark AUD/USD Forex market, rallied then paused after Chinese data. The world’s second largest economy released its industrial profits data. The data showed returns rising 19.1 percent, annually, in June from 16.7 percent in May.
China is Australia’s largest reginal trade partner, especially for raw material, and economic news-flow from the China often has knock-on effects on the Down Under. Thus, it will often trigger a response from the Aussie dollar. Today, however, the Forex market’s reaction to the strong Chinese economic data was mute.
There are some reasons for this which include that the Aussie is a sentiment linked currency and there is a great deal of stateside political drama. US President Donald Trump announced, via Twitter yesterday, that all transgender people would be banned from their military. His feud with attorney general, David Sessions continues. The probe into Russia and the elections is also ongoing. There is also the current monetary policy stance from the Reserve Bank of Australia (RBA).
The Aussie Dollar focuses on the RBA
The recent dovish RBA monetary policy commentary that has been pushing back against investor expectations for a rate hike speculation continued yesterday. RBA Governor Philip Lowe followed Deputy Governor Guy Debelle comments from last week. Mainly, they said that the RBA and their estimate of a “neutral rate” of three percent does not mean imminent monetary policy, or interest rate tightening is on the imminent horizon.
The sentiment linked Australian Dollar appears to be enjoying the good mood in the stock markets. As the Chinese data crossed the wires, and even before, the AUD/USD Forex market was following the benchmark equities bourse, the ASX 200 higher. It was also helpful that other regional stock markets like the Nikkei 225, were also moving higher after today’s opening bell.
