US/China Trade Back In Focus

Thursday, August 16 – Asia Session Recap

During the Asia-Pacific session, the main event was Australia’s employment report for July.

The report printed mixed as Employment Change came in at -3.9K (Exp.  15.0K), although Full-Time Employment increased by 19.3K. Furthermore, the Unemployment Rate fell to a 6-year low of 5.3% versus market consensus of remaining unchanged at 5.4%.

Despite no particularly clear bias from Australia’s employment report, AUD has strengthened throughout the session due to the risk-on tone. This follows from reports that the US and China are to recommence trade talks for the first time in 2 months.

According to Bloomberg, these will be low-level talks in a bid to resolve the ongoing trade war.

Alongside supporting AUD, the improvement in the market’s risk tone has weighed on USD and JPY. As such, AUDUSD and AUDJPY have pared all of yesterday’s weakness and trade at session highs.

For additional research, we’ve posted news articles from around the web below.

Australian jobless rate drops to lowest level since 2012

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