The Australian dollar is currently selling off against all major currencies. Last week, the currency moved up sharply against the US dollar. Notably, trading volumes in Australian dollar futures decelerated last week. This is a sign that traders did not buy last week's rebound with much conviction. Today's AUD/USD trading range is 0.7050 - 0.7320.
There are no significant domestic developments today - instead the Australian dollar is tracking developments across financial markets. As we wrote in today's US dollar daily update, China has canceled upcoming trade discussions with the United States. According to an article in the Wall Street Journal, China is refusing to negotiate in the face of escalating tariffs. Earlier today, the Australian dollar sold off sharply in response to the news. More recently, the currency has made up most of its losses. Note that other commodity currencies, including the Canadian dollar, are fairly weak today.
Turning to this week's economic calendar, there are no market-moving announcements on the calendar. As a result, Australian dollar traders are likely to remain focused on global developments. Our outlook on the Australian dollar remains bearish.
|September 28||Private Sector Credit YoY AUG||4.4%|