For a lot of the currencies, price action was muted this week ahead of the anticipated Jackson Hole Symposium event this weekend. The Aussie dollar was in that camp, spending much of the week meandering in slightly positive territory against the other majors until fresh U.S.-China trade war developments hit the markets on Friday and sent the Aussie into the red against the other major currencies.
Australian Headlines and Economic data
- The Conference Board Leading Economic Index for Australia increased 0.1% in June 2019 to 107.3
- RBA Meeting Minutes: Open to further easing, risks tilted to downside near term – Aussie pairs drifted lower into the event release, and given that there were no new surprises in the minutes, the following bounce was likely profit taking from traders after the expected dovish rhetoric was confirmed.
- The August Flash PMI show Business activity decreases for first time in five months. It looks like Aussie pairs reacted in unison by moving lower as the services component surprised big time by indicating contractionary conditions (49.2 in Aug. vs. 52.3 in July).
- Risk aversion sentiment gained steam during U.S. session to drop the Aussie against the rest of the majors, sparked by news that China will retaliate with tariffs on $75 billion worth of US goods and resume auto duties, and fears especially jumped after Trump orders US companies to look for ‘alternative to China’ in tweet.