News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Breaking news

EU Official says UK trade deal imminent and expected by the end of the weekend barring last minute breakdown in talks

AUD/JPY Fell After China Threatened Retaliation for US Hong Kong Bill

AUD/JPY Fell After China Threatened Retaliation for US Hong Kong Bill

2019-10-16 01:16:00
Dimitri Zabelin, Analyst
Share:

Hong Kong Bill, US Dollar, AUD/JPY, Trade War –TALKING POINTS

  • The US House just proposed, passed a bill supporting Hong Kong protesters
  • Legislation would require annual inspection of HK’s autonomy from Beijing
  • China has threatened to retaliate if the bill passes amid Sino-US trade talks

Learn how to use political-risk analysis in your trading strategy!

The Japanese Yen rose at the expense of the Australian and New Zealand Dollars after China threatened to impose retaliatory measures against the US after the House passed a bill to support the Hong Kong protesters. The legislation would entail an annual review of the city’s autonomy from Beijing after a proposed extradition bill earlier this year was met with a severe backlash and led to the current state of affairs in Hong Kong.

USD/CNH, NZD/USD, AUD/JPY – Daily Chart

Chart showing USD/CNH, AUD/JPY, NZD/USD

AUD/JPY chart created using TradingView

The bill would impose sanctions on any officials who are “responsible for undermining fundamental freedoms and autonomy in Hong Kong”. The proposal comes at a delicate time as the US and China are in the midst of attempting to conclude “Phase 1” of a trade deal. However, this maneuver by Congress may put a thorn in the President’s side as he attempts to ratify an agreement.

Looking ahead, traders will be closely watching whether the Senate will also pass the bill. However, even if it does not pass through the Senate, the sting from an attempt may be enough to extend the duration of trade talks as Beijing reconsiders its strategy with Washington. This new uncertainty may echo in Wall Street and send equities lower along with commodity-linked currencies like AUD and NZD.

Meanwhile, anti-risk assets like the Japanese Yen and US Dollar may catch a haven bid against the backdrop of what is an already economically-precarious environment. The IMF recently updated its global growth forecast for 2019, showing an expansion of three percent, the weakest pace in the post-recession era. Strained trade relations have been a primary factor behind slower growth and the current state of affairs suggest there is still more to come.

US DOLLAR TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES