The dollar opened mixed in early Sydney trading but stable against the Aussie dollar after the much-anticipated Jackson Hole Federal Reserve Symposium on Friday. Powell signaled that the Fed will raise rates if needed and will keep them high. This goes in line to their philosophy of rate hikes going back to March 2022. Most G10 currencies weakened against the dollar after the Powell statement except the Aussie. The AUDUSD seems to be waiting for clearer direction as it pertains to China, a huge trading partner for Australia, with positive news with China’s stimulus and the U.S.-China trade talks but dismal economic releases, showing a continued slowdown. Industrial profits have fallen for the 7th consecutive time in China, down 6.7% in July from a year earlier. China is trying somehow to boost its economy, cutting its stamp duty on stock trade this weekend after the dismal industrial profits report. China’s official PMI’s are to be released this coming Thursday, which will not paint a pretty picture.
Australia’s CPI is expected on Wednesday with its estimate to come in just slightly lower at 5.2% from a 5.4% the prior month. Housing prices for August will be released on Thursday.
