1 MIN READ
Previous risk-on sentiment has now been challenged with potential US sanctions on China and protests in Hong Kong. China is also expected to impose coal import restrictions which will likely negatively impact the AUD. Beijing has already put an import ban on Australian beef and applied tariffs on barley. If coal import restrictions are put in place, markets are expecting to the Aussie dollar to fall again.
The US Dollar gained slightly yesterday, as the weight of mounting tensions between the US and China pushed the Dollar higher. Risk currencies fell slightly lower losing 0.4%. Looking ahead, Jobless Claims for last week, GDP for Q1 and Durable Goods Orders for April will be released from 8.30pm (SGT) tonight.
Disclaimer: The above comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Error & omission excepted.