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Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

Aussie takes Sino-US trade disputes in its stride

Published September 19, 2018

Author: Dennis Li

With the markets taking the further US-China trade friction in its stride, the Aussie dollar showed impressive resilience, broadly up against its major peers with AUDUSD regaining 0.53% of its value overnight and the AUDEUR also rallying by 0.67% in the last 24 hrs. Again, the 0.7235 resistance level proved too tough to break but there does appear to be enough anecdotal evidence in the market to suggest a break will come as soon as today.

The RBA minutes of September meeting released on Tuesday sounded upbeat on the healthy labor market and household consumption, but warned that trade tensions pose a ‘material risk’ to the economy.

  • US President Trump said on Tuesday that Washington will still leave the door open for China to negotiate an end to the trade war between the two countries after announcing new tariffs of 10% on nearly $US200 billion worth of additional Chinese goods and threatening more if China retaliates.
  • Beijing added $US60 billion of US products to its import tariffs list in retaliation for Washington’s new tariffs.
  • According to a Japanese government source, the start of a second round of trade talks between Japan and the US will be delayed until after the new tariffs on China by the US come into force on Monday 24th September.
  • President Trump said on Tuesday the US trade deal with South Korea has been fully renegotiated and may be signed at the United Nations where leaders will gather for the 73rd session of the General Assembly.