Australian dollar drops and Yuan gains as US trade deal nears

See the latest Australian dollar analysis here:

Macro Afternoon

by Chris Becker

The Australian dollar failed to make headway above the 69 cent level vs. USD overnight and is falling in the Asian session as more good news surrounds the US trade deal with China:

After a small dip its holding against Yen:

But the big news of the hour is that the US is dropping the “currency manipulation” line about the Chinese handling of its Yuan fix…which it then strengthened considerably in the midday fix, pushing offshore trading in Yuan well below the 6.87 level. This hastens a strengthening trend that has accelerated since Xmas:

Back to Aussie, which is still struggling on the AUDNZD proxy with the downtrend still underway – parity next? (and then time to call in Jacinda to rule Western New Zealand?)

Maybe not time yet to buy some more gold in AUD as the price is slipping, the downside target at $2100AUD per ounce would be the better accumulation zone:

Only 21 more days til the next RBA meeting!

 

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Comments

    • Maybe people are realising we trade IO, coal and a few other minerals. Is China going to go on another infrastructure spending spree because of a trade deal ? Or buy a lot more pork and soybeans from the US