The US dollar held the centre-stage after the United States imposed a new round of tariffs on Chinese imports. Although this outcome appears to be gradually priced-in to markets, what remains the major point of uncertainty is the likely Chinese response.

Meanwhile, Australia’s Central Bank sounded upbeat about a solid labour market, falling currency, and resilient household consumption… but cited that trade tensions pose a “material risk” to the economy.

Looking at the key events for the week…..

Bank of Japan releases its interest rate decision tomorrow, followed by Britain’s consumer Price index for August and New Zealand’s second quarter GDP.

FX Rates 18.09.18


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