Negative economic updates didn’t stop the Aussie from becoming a net winner, thanks to boosts early and mid-week off of quick moves in the U.S.-China trade war story.
Australian Headlines and Economic data
- Trump says US and China to resume trade talks – this was the catalyst for the big market sentiment turn around just before the European session open from the extreme negativity sparked during last Friday’s events. Aussie pairs rallied on the news that “China called the U.S.” to restart trade talks, even after Chinese media debunked the idea that China called the U.S. over the weekend, and managed to hold most of its gains off of this event through the whole week.
- Australia private capital expenditure falls -0.5% (seasonally adjusted) in the June quarter
- Broad mover higher in the Aussie against the major currencies during the morning London session, possibly on the news that China won’t retaliate to new U.S. tariffs and their rhetoric on resolving the trade dispute with a ‘calm attitude.’ It showed China isn’t looking to escalate the trade war further which calmed down traders into lightening up on safe haven bets and get back to risk assets.