Asia Pacific Market Open Talking Points
- US markets were offline for vacation, resulting in less liquid trading conditions
- Risk aversion on US-EU trade war fears increased USD, trimming past losses
- AUD / USD May Decline in RBA minutes after the opposition kept chess in check
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US Dollar [19659000] had a mixed session on Monday when Wall Street was closed for the presidential holiday, resulting in less liquid trading. Winnings against the last half of the session helped to trim previous losses that could have resulted in a much worse Greenback day.
This appeared to be triggered by part of the risk aversion that Nikkei 225 futures declined [19659013] along with pro-risk Australian and New Zealand Dollars . A catalyst may have been threats from the European to retaliate against tariffs which the United States may impose on the local automotive industry .
While European Commission President Jean-Claude Juncker noted that he believed the US president Donald Trump wanted to keep his word not to impose tariffs, Spokesman Margaritis Schinas beat one more defensive tone . Meanwhile, the regional block prepares around $ 23b in retaliatory rates if the conditions warrant such action.
In the future, Asia Pacific markets may have a more mixed start as S & P 500 futures have changed little. With the RBA meeting in minutes at the docking station, the Australian dollar may be subject to a loss if the details of the report make up [central bank] shifts away from favoring a trip down the road .
] AUD / USD Technical Analysis
Decrease in AUD / USD on Monday reinforced near-term stability mentioned in this week's technical appearance . This can set the stage for a decline in support that is a range between 0.7081 and 0.7054. A pressure on resistance shows the heights achieved in January.
AUD / USD Daily Chart
Asia Pacific trading season financial events
** All times stated in GMT. See
full financial calendar here
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— Posted by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com
To contact Daniel, use the comments below or @ddubrovskyFX on Twitter
