12 February, 2019
AUD/USD rose on Tuesday to test a session high of 0.70853 after it fell yesterday to its lowest rate in more than five weeks (0.70517). The Australian dollar came under renewed selling pressure on Monday, undermined by broad-based US dollar strength. Once again the prevailing theme of the session was US dollar strength. It rallied against all other G10 currencies, helping the US dollar index (DXY) climb to the highest level this year. A lift in US bond yields ensured the greenback performed strongly against all of the other major crosses, including the Aussie dollar which fell to the lowest level since early January this year. The US dollar remained high on Tuesday as concerns about a trade deal with China and an economic slowdown in Europe sent investors into the safe-haven currency. China struck an upbeat note on Monday as trade talks resumed with the United States, but also expressed anger at a U.S. Navy mission through the disputed South China Sea, casting a shadow over the prospect for improved Beijing-Washington ties. Early this morning, The National Australia Bank’s update on Australian business confidence showed a figure of 4 for January, which was better than previous 3. Home Loans data, however, showed a decrease of 6.1% in December, amid expectations for a decrease of 2.0%.