The Australian Dollar US Dollar (AUD USD) exchange rate surged by around half a cent early on Wednesday as market concerns grew over Trump Jr’s correspondence with a Russian lawyer.
US Dollar (USD) Pressured By Trump Jr Emails
Sentiment in the US Dollar has continued to be pressure this week by the news that Trump Jr held a meeting with a Russian lawyer with ties to the Kremlin in the run up to the US Presidential Election.
Trump Jr claimed that he met with the lawyer in the hopes of getting some potentially damaging material on Hillary Clinton and that his father had no knowledge of the meeting.
The subsequent media outcry has led to Trump Jr releasing the entire chain of emails between himself and the music publicist who helped set up the meeting in an attempt to show ‘transparency’.
However with Trump’s presidential campaign still under scrutiny for alleged ties to the Russian State in an ongoing FBI investigation into Russian meddling in last year’s election the latest revelation has not exactly inspired confidence in the US administration.
Australian Dollar’s (AUD) Advance Slowed as Consumers Remain Pessimistic
Meanwhile the Australian Dollar gains were slightly tempered on Wednesday with the release of Westpac’s latest Consumer Confidence survey, which showed that the majority of households remain pessimistic in their economic outlook, with the index showing a reading of 96.6.
July’s survey is the eighth consecutive month in which pessimists have outnumbered optimists and have led to a sub-100 reading on the index.
Analysts warn that July’s data is another sign that investors should be wary of a fall in consumer spending over the coming months, with the survey suggesting that families are likely to shy away from making any large purchased as they keep a tight grip on their finances.
AUD USD Forecast: Yellen Testimony to Bolster ‘Greenback’?
The AUD USD exchange rate may be forced to relinquish some of its recent gains overnight on Wednesday as Federal Reserve Chair Janet Yellen testifies in front of Congress on the state of the US economy, with analysts predicting that the US Dollar will rise if she reaffirms her commitment to raising interest rates for a third time this year.
Meanwhile thanks to a lull in domestic data the Australia Dollar’s fortunes are likely to be close tied to movement in commodity prices for the remainder of the week, with robust demand likely to help the ‘Aussie’ to advance.
Current Exchange Rates
At the time of writing the AUD USD exchange rate was trending around 0.7675 and the USD AUD exchange rate was trending around 1.3031.