Why the Australian dollar is the big loser in U.S.-China trade spat
As the U.S. and China, the world’s two largest economies, continue their back and forth tariff spat one currency has borne the brunt of the deteriorating relationship between President Donald Trump and his Chinese counterpart Xi Jinping. Long considered a proxy for the health of the Chinese economy, Australia has, for the most part, flourished over the past decade. However, fears of global protectionism on the rise, the commodity-dependent currency has suffered. Read More @ https://www.marketwatch.com/story/why-the-australian-dollar-is-the-big-loser-in-us-china-trade-spat-2018-10-05
WHAT ARE THE MAJOR PAIRS SAYING?
The USD & GBP were the winner last week. This week is going to be another round of drama. We are expecting president Donald Trump going head-on with China once again – President Donald Trump may hold talks with his Chinese counterpart Xi Jinping at a meeting of the Group of 20 nations at the end of next month to resolve the escalating trade dispute, a senior White House adviser said. “Better to talk than not talk, but the talks have to be serious,” White House National Economic Council Director Larry Kudlow told Bloomberg Television in an interview Friday. G-20 leaders will meet in Buenos Aires from Nov. 30 to Dec. 1. https://www.bloombergquint.com/china/trump-may-meet-xi-at-g-20-summit-to-discuss-trade-kudlow-says
Time for USD to take a correction – expect NZD, AUD & CAD gaps tomorrow.
U.S. Commerce Secretary Wilbur Ross signaled on Friday that Washington may flex its muscle with additional trading partners in order to exert pressure on China to open its markets, saying that a “poison pill” provision in the recently completed pact with Canada and Mexico could be replicated. https://www.reuters.com/article/us-usa-trade-ross-exclusive/exclusive-u-s-commerces-ross-eyes-anti-china-poison-pill-for-new-trade-deals-idUSKCN1MF2HJ
Always be conservative and be in control of money management – don’t overtrade and kill your position.
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