USD Dented, AUD Slammed on China Tensions - US Market Open
MARKET DEVELOPMENT – USD Dented, AUD Slammed on China Tensions
USD: The greenback is marginally softer across the board with exception of AUD and NZD, following the latest Philly Fed data, in which the business outlook fell to its lowest level since the May 2016. Consequently, this poses downside risks to next months ISM Manufacturing reading, while also confirming that the US economy is indeed beginning to feel the spill-over effects from the slowdown observed in the rest of the world.
GBP: A relatively choppy session for the Pound thus far amid a serious of conflicting Brexit headlines. GBPUSD had initially dipped on reports citing a UK Official that a Brexit deal next week is unlikely. However, GBP quickly pared the initial decline after EU Diplomats sources noted that they were moving towards breaking Brexit impasse. GBPUSD currently hovering around its best levels of the day and comfortably above the 200DMA at 1.3050.
AUD: The Australian Dollar fell over 1% overnight after China stated that ports will ban imports of Australian coal amid the rising geopolitical tensions between China and Australia. Further losses had been stemmed with AUDUSD holding 0.71 (For technical analysis, click here). Of note, coal is currently Australia’s most valuable export, in which China consumes roughly 25% of their coal exports.
DailyFX Economic Calendar: – North American Releases
How to use IG Client Sentiment to Improve Your Trading
Four Things Traders are Reading
- “AUD Technical Analysis Overview: AUDUSD, AUDJPY, AUDNZD” by Justin McQueen, Market Analyst
- “FTSE 100 Rally Blocked by Sterling Strength and Heavyweight Technicals” by Nick Cawley, Market Analyst
- “AUDUSD & AUDNZD Poised to Resume Lower Soon” by Paul Robinson, Market Analyst
- “GBP Price Outlook: Bulls Defiant in Face of Brexit, Possible Fitch Downgrade” by Martin Essex, MSTA, Analyst and Editor
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.firstname.lastname@example.org
Follow Justin on Twitter @JMcQueenFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.