- June 9, 2022
- Posted by: Stratford Team
- Category: Economy
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Australian Dollar, AUD/USD, Crude Oil, China Trade Balance – Talking Points
- Australian Dollar falls vs USD as oil prices hit fresh monthly highs
- China’s May trade balance is in focus as economic woes linger
- AUD/USD approaches the June low after crossing the 50-day SMA
Thursday’s Asia-Pacific Outlook
Asia-Pacific markets may fall after inflation worries reappeared on Wall Street, sending US stocks lower. Crude oil prices hit fresh multi-month highs, with WTI rising more than 2% overnight. The breakdown in sentiment weighed on the risk-sensitive Australian Dollar while benefiting the US Dollar. Treasury yields rose across the curve as traders ditched bonds, anticipating that higher oil prices may firm up inflation bets and, in turn, Fed rate hike bets.
The Aussie Dollar may fall further if the dour sentiment persists through today’s trading session. However, economic data out of China may offer a lifeline. China is set to report its May trade balance…
