Target price of 1.84 In their view, they see AUD/USD falling to 0.67 by year-end stating that recent developments also increases the chance of early elections in October. However, they recommend buying GBP/AUD in six-months spot as the “political risks are better priced in GBP but not quite adequately reflected in the AUD”.
Cable at the lows of the day Cable is down 68 pips to 1.2842. It’s been on the upswing since August 15 when it touched 1.2662. The drop today isn’t about any Brexit news, rather it’s a broad US dollar climb.
US tariffs went into effect at midnight The US put tariffs on $16 billion of Chinese goods today. China will fight them at the WTO. There’s all kind of talks about negotiations between China and the US but not much talk about the WTO. China can drag it out and the WTO will probably rule…
Eurozone consumer confidence data The ECB was insistent that a bad stretch at the end of Q2 was transitory. They might want to re-think that. ForexLive
July US new home sales miss estimates ForexLive
Markit manufacturing PMI ForexLive
China on Australia’s decision to ban Huawei and ZTE ForexLive Eamonn had the story
June house price index data Here’s the index with a 3-month moving average — it’s not a great look: ForexLive
Weekly US initial jobless claims ForexLive
What’s coming up in New York trading It’s been a light week for US economic data but it picks up today with a few notable releases. Politics is still probably the driver and Jackson Hole tomorrow should keep volatility restrained.