The Australian dollar rallied today, rising for the eighth session versus the Japanese yen, after signs that the US-China relations are improving. That spurred hopes that the trade conflict between the two world’s biggest economies can end in the foreseeable future. And optimism increased demand for riskier high-beta assets.
Yesterday, China announced that it will exempt 16 types of US goods from tariffs. In response, US President Donald Trump said that he will postpone implementation of new tariffs on Chinese imports from October 1 to October 15 as the People’s Republic of China celebrates its 70th birthday on October 1. While it was more symbolic gestures than any practical moves, but they show that both sides want to maintain good relations.
As for Thursday’s macroeconomic data in Australia, it was not particularly good. The Melbourne Institute Inflation Expectations fell to 3.1% in September from 3.5% in August.
Released yesterday, the Westpac-Melbourne Institute Index of Consumer Sentiment demonstrated a drop of 1.7% in September. The decline followed an increase of 3.6% in August.
AUD/USD gained from 0.6861 to 0.6883 as of 8:45 GMT today. EUR/AUD declined from 1.6040 to 1.6017, touching the low of 1.5987 intraday. AUD/JPY went up from 73.96 to 74.21, and its daily high of 74.47 was the highest since the big drop on August 1.
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