Continued U.S.-China trade tensions coupled with weak economic updates from Australia means another losing week for Aussie bulls.
Australian Headlines and Economic data
- Australian home loan lending resumes its slide
- China to impose tariffs on U.S. goods despite Trump warning – rising tensions between the U.S. and China is likely the catalyst for the early week risk aversion sentiment and weakness in the Aussie given how it is treated as a proxy trade to China. And likely a contributor to the pop higher in gold early in the week.
- Australian business conditions tumble with job prospects hit hard as economy cools
- China’s retail sales growth slumps to 16-year low as trade war risks rise – Again, the Aussie often trades as a proxy to China, so it’s likely the weak update in Chinese retail sales and industrial production added to the pressure the Aussie was likely receiving after the Australian business conditions update
- Australia jobless rate jumps to eight-month highs, Australian dollar stumbles – This employment update likely puts additional pressure on the Reserve Bank of Australia to cut rates to support the weakening economy.