The Australian Dollar was on its front foot Wednesday as traders responded positively to China's latest steps to prop up its economy ahead of December's unemployment and jobs numbers, which could have an impact on the Reserve Bank of Australia (RBA) interest rate outlook.
The Australian Dollar weakened Tuesday after an escalating international dispute over the detention of Huawei's finance director in Canada was seen threatening an eagerly anticipated deal to end the so-called trade war between the U.S. and China.
The Australian Dollar softened Monday as concerns about the domestic and Chinese economies resurfaced again, drawing attention away from recent progress in trade talks and threatening to scupper the Antipodean unit's nascent recovery.
The Australian-U.S. Dollar exchange rate is climbing steadily towards an important zone in the 1.72-3 region which, if pierced, could seriously undermine the bearish case and potentially break the ‘hold’ of the long-established downtrend.
The Australian Dollar rose Friday following reports that U.S. officials are debating lifting some tariffs on goods imported from China, but a flurry of economic figures due out of the world's second largest economy at the start of next week presents a risk to the Antipodean currency.
The Australian Dollar was unmoved by a steep fall in the Westpac Consumer Sentiment index Wednesday but selling the Antipodean currency is still a "top" investment idea for the 2019 year, according to analysts at DNB Bank in Singapore.