In short
- The AUD lost ground to the US dollar and British Pound overnight
- The Trade War continues with few obvious winners
- A hard Brexit looks more likely now
AUD to USD exchange rate
| Time | Open | Low | High |
|---|---|---|---|
| Today | 0.6729 | ||
| Yesterday | 0.6726 | 0.6747 | |
| In the last week | 0.6697 | 0.6771 | |
| In the 3 months | 0.6697 | 0.6680 |
What's happening?
The Australian dollar drifted lower on Monday and Tuesday following a long weekend in much of Australia.
Overnight, tensions from the Trade War sent the US higher and pressured the AUD USD exchange rate lower.
Meanwhile, Brexit continues to drag on the British pound. It lost ground to most currencies except the AUD after the chances of a 'hard Brexit' increased.
What does a 'hard brexit' mean?
According to the BBC
A no-deal Brexit means the UK would leave the European Union (EU) and there would be no agreements in place about what the relationship between the UK and the EU will be like in future.
This includes special agreements about how UK and EU companies could work and trade with each other.
If a special deal between EU leaders and UK politicians isn't agreed, then the UK could leave the EU with no deal in place. This would be a no-deal Brexit.
Up Next
On Wednesday, the meeting minutes from the FOMC in the US are released. This will indicate the thinking behind the most powerful central bank in the world and how likely they are to cut interest rates further.
Outside of that, there isn't a lot of important news that is likely to move the Australian dollar significantly.
