Daily Morning Report 08.08.2017

Daily Morning Report 08.08.2017

The Australian dollar edged higher against its U.S. counterpart on Tuesday, while the New Zealand dollar held steady after the release of mostly positive economic reports from both Australia and China.

AUDUSD edged up 0.14% to 0.7924.

Earlier Tuesday, the National Australia Bank said its business confidence index rose to 12 in July from a reading of 9 the previous month.

Separately, official data showed that China’s trade surplus widened to $46.74 billion last month from $42.77 billion in June.

Exports increased by an annualized rate of 7.2% in July and imports climbed 11.0%, although both readings were slightly below analysts’ projections

China is Australia’s biggest export partner.

NZDUSD was little changed at 0.7357, not far from the previous session’s two-week lows of 0.7348.

Market participants remained cautious ahead to the Reserve Bank of New Zealand’s monthly policy decision, due later in the week.

Meanwhile, the greenback continued to be supported by Friday’s strong U.S. employment data, which fuelled expectations the Federal Reserve will stick to its plans for a third interest rate hike this year.

Investors were now eyeing U.S. inflation reports later in the week for indications of whether the recovery in the dollar is sustainable in the longer term.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.09% at 93.22, not far from Friday’s one-week high of 93.64.