- AUD/USD succumbs to gains within the day as the US dollar recovers after Hasait has ruled the United States that he is afraid of stagnation.
- Investors expect that the United States lacks Efficiency to arrange alternatives to Chinese goods locally.
- The United States is expressing a positive development in commercial talks between Washington and the European Union.
The AUD/USD pair abandons his gains inside the day and turns into negative during the trading hours in North America on Monday. The Australian husband decreases to approximately 0.6280 from the highest level during the day at 0.6340 as the US dollar index (DXY), which tracks the value of Greenback for six main currencies, stretched after visiting near the lowest level in three years from 99.00.
The US dollar index attracts offers after the Director of the National Economic Council of the United States (United States) (NEC) Kevin Haysit the possibility of recession. “100 % do not expect stagnation,” Haysit said in an interview with Fox business network. Hasit added that we are “tremendous progress” in the tariff talks with the European Union (EU).
Earlier in the day, the US dollar (USD) was very pressure amid fears of potential recession due to the escalating trade war between the United States and China. The United States and China have increased import duties significantly. Investors are concerned that this may lead to a slowdown in the American economy because its environment is not sufficient to compensate for the need for goods imported from China. Such a scenario is the inflation of the economy and can significantly reduce the purchasing power of families.
In addition, the positive development of the commercial deal between the United States and the euro region is also favorable to the US dollar. This indicates that the trade war will be limited between the United States and China at the present time.
This week, investors will focus on US retail sales data for March, which will be released on Wednesday. Retaire sales data is estimated, which is a major scale for spending on consumers, has grown 1.4 % compared to an increase of 0.2 % in February.
On the Australian front, the intense trade war between the United States and China remains a major concern for the Australian economic expectations, given its great dependence on its exports to China. At the local level, investors will focus on employment data for the month of March, which will be issued on Thursday. The recruitment report is expected to show that the unemployment rate accelerates to 4.2 % of 4.1 % in February.
