Risk sentiment was hurt further yesterday after US President Donald Trump said that a trade deal with China may come after the 2020 Presidential elections. Among the G10 currencies, AUD was the main loser which apart from the trade headlines, also felt the heat of Australia’s below-consensus GDP for Q3. As for today, focus is likely to fall on the ISM non-manufacturing PMI, as well as the BoC interest rate decision.
Trump Says US-China Deal May Come After Elections
The dollar traded lower or unchanged against most of the other G10 currencies on Tuesday and during the Asian morning Wednesday. It lost ground against JPY, CHF, GBP and CAD in that order, while it was found virtually unchanged against EUR, NZD and SEK. The greenback underperformed versus AUD and NOK.
The strengthening of the safe havens yen and franc, combined with the relative weakness of the Aussie and the Kiwi, suggests that investors’ morale remained subdued. Indeed, most...
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