The AUD USD exchange rate fluctuated overnight on Tuesday as markets became increasingly dovish towards the incoming US President, Donald Trump.
Australian Dollar US Dollar (AUD USD) Fluctuates as Trump Inauguration Nears
The Australian Dollar US Dollar (AUD USD) exchange rate has becoming increasingly volatile over the past 24 hours as market uncertainty over Trump begins to surface.
With less than two week to go until his inauguration, observers have begun to question what exactly his presidency will mean for the US economy.
While many traders are upbeat about his stimulus plans in the hopes they will strengthen the jobs market and cause a notable growth in wages, some investors are increasingly unsure on how he will shape US foreign policy.
Trump has already deviated greatly from the previous administration’s policies as he cosies up to Vladimir Putin, while angers China over his communication with Taiwan, leaving markets uncertain about how his presidency could impact other foreign relationships.
Chinese Commodity Futures Strengthen Australian Dollar
The Australian Dollar’s gains on Tuesday were largely driven by an explosive day of trading in the Chinese commodity market.
Chinese commodity futures surged yesterday as speculative forces once again ran riot, with iron ore in particular skyrocketing, reaching its daily cap by the end of trading and leading prices to rally by around 0.5% despite an announcement that there would be further Steel production cuts in the major steel province of Hebei as Chinese officials attempt to tackle growing environmental concerns.
AUD USD Forecast: Consumer Confidence May help ‘Aussie’ Advance
The AUD USD exchange rate may climb higher later today, following the release of Westpac’s latest Consumer Confidence Index, which analysts expect will rally from a drop to 97.3 last month, as consumer’s become more upbeat about the start of the New Year.
Meanwhile the US Dollar may continue struggling following the release of MBA’s latest mortgage figures as analysts expect new applications to have dropped over the holiday period.
Current Interbank Exchange Rates
At the time of writing the AUD/USD exchange rate was trending around 0.73 and the USD/AUD exchange rate was trending around 1.35