audusd

Analysts at Westpac Banking Corporation explained that early last week, AUD/USD rose to 3-week highs just short of 0.7500 before sliding more than a cent on the Trump tariffs.

Key Quotes:

"It has since recaptured some lost ground to just above 0.7400 but is not being helped by commodity prices. In particular, metals such as copper have tumbled in recent weeks, with Australia’s export basket at a 1 month low.

In the week ahead, Australia’s calendar highlights are the minutes from the RBA’s July meeting, with a focus on banks’ rising funding costs and the June labour force data. Westpac looks for a 17,000 rise in total employment and a steady unemployment rate, at 5.4%. This would not challenge the Reserve Bank’s optimism on the Australian economy, after last week’s strong readings on consumer and business sentiment.

Overall, AUD/USD has been capped by US dollar strength backed by US data and Fed optimism, but supported on dips by pauses in the US-China trade battle."