Australian Dollar Price Stabilizes After Tumble on China Port Coal Ban
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AUD price, news and analysis:
- China’s Dalian port has reportedly banned imports of Australian coal as relations between Beijing and Canberra deteriorate.
- Nonetheless, after falling in Asia, AUDUSD has steadied in Europe.
Chinese port bans Australian coal imports
The Australian Dollar was rocked in Asia by a report from the Reuters news agency that the northern Chinese port of Dalian has banned imports of Australian coal indefinitely, in a move that could reflect deteriorating relations between China and Australia over cyber security and a decision by Australia to revoke the visa of a Chinese businessman.
Reuters, which quoted a Dalian official, added that major ports elsewhere in China are also prolonging clearing times for Australian coal, which is the country’s biggest export earner. In response, AUD fell sharply in Asia but stabilized at the lower levels in Europe, suggesting that demand persists for the currency that is widely seen as attractive when investors are confident enough to take on extra risk.
AUDUSD Price Chart, Five-Minute Timeframe (February 21, 2019)
Chart by IG (You can click on it for a larger image)
Earlier, AUDUSD jumped as Australia reported that 39,100 net new jobs were created in January, more than twice the consensus forecast of economists. However, it eased back quickly as traders argued that the data still left open the possibility of interest-rate cuts later this year.
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--- Written by Martin Essex, Analyst and Editor
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.