The Australian dollar rallied today against its major rivals. While decent macroeconomic data provided some help to the currency, the main contributor to the rally were the latest developments in the US-China trade conflict.
The news came out today that the United States and China are going to resume their trade negotiations in “early October”. Both sides sounded optimistic about the planned talks. Previously, it was not clear if talks will happen in the foreseeable future at all, let alone a date, even if not particularly specific.
While the news about the trade conflict affects all markets, the Aussie reacts particularly strongly to them. China is Australia’s biggest trading partner, making its economic well-being have a strong impact on the Australian economy.
As for macroeconomic data, the Australian Bureau of Statistics reported that the trade balance surplus narrowed from A$7.98 billion in June to A$7.27 billion in July on a seasonally adjusted basis. The actual value was a bit higher than the median forecast of A$7.20 billion.
AUD/USD gained from 0.6796 to 0.6817 as of 7:41 GMT today. EUR/AUD declined from 1.6231 to 1.6195, touching the low of 1.6157 intraday. AUD/CHF climbed from 0.6662 to 0.6697.
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