Pound-Australian Dollar Tests One-Week Lows, Outlook Rests on Fate of China's Yuan

Australian Dollar rebounds versus the Pound and Dollar on Chinese relief, but can the advance last?

The Australian Dollar popped higher Tuesday as traders responded to an optimistic Reserve Bank of Australia (RBA) and markets breathed a collective sigh of relief over the latest U.S. tariffs against China, but analysts are still saying to sell the Antipodean unit.

The Australian Dollar rose in response to a weaker greenback but the U.S. is threatening to levy another round of tariffs on Chinese goods exports and Bank of America strategists are saying selling the Antipodean unit is their "trade of the week". 

GBP/AUD risen to major resistance level and stalled and we will need to see a decisive break in order to forward the pair's uptrend. This week GBP eyes inflation and retail sales data; the Australian Dollar the RBA minutes.

The Australian Dollar is likely to be volatile in coming months, according to multiple analysts, although forecasts of where the currency will end this and next often read like a Dickensian Tale of Two Cities. 

The Australian Dollar extended gains over rivals Thursday after official data showed the economy creating new jobs at a rapid clip during August and as markets continued to serenade signs of a detente in the U.S. "trade war" with China.

The Australian Dollar has taken off on news of a potential endgame being in sight for the ongoing US-China trade spat.

The Australian Dollar fell broadly in jittery markets Tuesday and could on course for steep declines over coming months, according to analysts at BNY Mellon, who are warning that President Donald Trump's anticipated tariffs on more than $200 billion of Chinese exports to the US will be a watershed moment for the Antipodean currency.