AUD/USD Dips to its Lowest in 10 Years

The Australian dollar has fallen to trade at 10-year lows against the USD even as US and China confirm their interest in holding in-person meetings during September in a bid to resolve their trade dispute. At the time of writing, AUD/USD is trading at around 0.671

Australia’s building approvals declined by 3.8% to a six-year low, signaling a weakening in the long-term outlook of its economy. Further bearishness in AUD/USD was driven by a strengthening in the US dollar as a result of investors’ rebalancing needs.

Global trade tensions continue to dominate the market sentiment, despite the temporary respite offered by the latest developments. So far, the US does not appear to be backing down from its latest tariff threat, due to come into effect starting September 1. Amid rising trade tensions and other geopolitical tensions from around the world, there is a high level of uncertainty in global financial markets.