Aussie rallies as new prime minister picked

 

Australia has a new PM

Australian PM Malcolm Turnbull confirmed his resignation earlier this morning and stated he will not stand for PM as the ruling Liberal Party voted 45-40 to hold a leadership ballot.  Subsequently former Treasurer Scott Morrisson won the ballot and was elected PM, with former Energy Minister Josh Frydenberg winning the party vote for deputy leader..

AUD/USD was little changed on the announcement of Turnbull’s resignation, hovering above one-week lows after suffering its worst day versus the US dollar since June 14, but then rallied after the new PM was announced. The pair touched 0.7290, testing the 200-hour moving average, before edging back to 0.7275. The question whether a general election will be called will no doubt breed uncertainty and should help to cap Aussie rallies in the days ahead.

 

AUD/USD Hourly Chart

Source: Oanda fxTrade

 

Trade talks came and went

No result from yesterday’s trade talks between the US and China, matching expectations of those in- and outside the meeting. China’s Ministry of Commerce released a statement saying the parties held “constructive and candid” talks in the session and both parties will keep in touch regarding the next steps.

Separately, an official at China’s National Development Reform Commission warned that the US tariffs on China goods would impact companies and procurers in the US and was closely monitoring the impact on China’s high-tech industry. The country will stick to the current innovation strategies, the official added.

 

Tariffs support U.S dollar

Slow data day until Powell speaks

There’s not a great deal of tier-1 data for markets to latch on to until Fed chairman Powell’s speech at Jackson Hole at 1400 GMT. We do see the revision for Q2 German GDP, though expectations are for no change from the preliminary reading. US durable goods orders for July is the only other item of note.

You can view the full MarketPulse data calendar at: https://www.marketpulse.com/economic-events/

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.