EBC Markets Briefing | Australian dollar slips as traders weigh export prospects

The Australian dollar hit more than one –week low on Friday. The RBA will hold its key interest rate at least until September, according to a Reuters poll of economists that who see at least two rate cuts in Q4.

The country’s GDP eked out modest growth at the end of 2023 as consumers drew down savings to keep spending. A rise in exports and a drop in imports contributed the most to the tally.

China's top diplomat will visit Australia and New Zealand next week, officials from both countries said on Thursday. The trip is expected to turn a new leaf in economic relations between China and Australia.

Treasury Wine Estates said China's Ministry of Commerce has released an interim proposal to remove tariffs on Australian wine, raising hopes nearly three years of stiff duties would soon end.

But the tables have turned on iron ore with prices coming under pressure from a combination of fundamental and sentiment factors in China that are likely to persist over the short term.

The Dalian Commodity Exchange futures contract fell to ¥819.5 a ton on Wednesday, a five-month low and down 19.2% from the peak so far this year. China’s port inventories have been surging in recent weeks.

The Aussie dollar could find early support at the key 200 SMA, while the loss of the region could pave the way for its further depreciation towards the yearly low at 0.6442.

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