The trade conflict continues to be in the centre of attention on the markets. The tension does not subside even after the easing of Donald Trump's rhetoric about China. Gold has become a real indicator of investor sentiment and its value today mainly depends on the situation with the negotiations to resolve the trade conflict, and not the dollar. Since Monday, Gold has consolidated slightly below $1,300, indicating a high demand for a safe asset.
The AUD rate fell today, taking into account the release of published unemployment data in Australia, which showed an increase in unemployment to 5.2%. This is the highest figure for the last 8 months. The share of the economically active population has increased at the same time, which can be considered negatively amid the growth in unemployment. Disappointing data on the labor market in Australia significantly increased the likelihood of a reduction of the rate in June because the RBA had previously hoped for an improvement on the labor market.
The Euro strengthened today after Donald Trump announced his readiness to postpone the introduction of duties on cars from Europe for up to 180 days. The final decision is expected before the end of this week. Whether the Euro will be able to stay at its current level and continue to grow also depends on macroeconomic statistics, which have recently not contributed to the strengthening of the EUR. In particular, today we expect data on the trade balance in the EU.
The afternoon will be less eventful. At the same time, a number of important reports on the real estate market are expected as well as the index of production activity from the Philadelphia FED.
