The Australian Dollar is in the “black” again. Overview for 11.08.2020

11.08.2020

Despite some weak statistics, AUDUSD found a reason for growth for the first time in several days.

The Australian Dollar is rising against the USD on Tuesday morning. The current quote for the instrument is 0.7180.

The key reasons why the Aussie is getting stringer are the USD behavior and market players’ attitude to risks. For Australia, the news is not so good because of the US-Chinese conflict. Earlier, China introduced sanctions against some of the American politicians. Today, US President Donald Trump said that there wouldn’t be any countermeasures because the USA had already done it. 

China is the most significant trade and economic partner of Australia, that’s why it’s very important for the Aussie that the Chinese economy had as few problems as possible.  

The morning statistics from Australia showed that the NAB Business Confidence in the country dropped to -14 points in July after being 1 point in the previous month. Any reading above 0 indicates the improvement of conditions and vice versa. 

At the same time, the overall situation in the Australian economy seems rather neutral. The labor market is trying to adjust to new market reality and it’s clear that it is quite flexible for succeeding in it sooner or later. It’s very important for the national currency to avoid any abrupt slumps – everything else can be dealt with. 

Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.