AUD/USD TALKING POINTS – AUD/USD, Liu He, Huawei, Commerce Wars
AUD/USD in focus as China and US proceed negotiations
Huawei scandal and arrest of CFO might weigh on the talks
Clock is ticking on reaching an settlement earlier than deadline
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The Australian greenback might be carefully monitored this week because the Chinese language delegation led by Vice Premier Liu He arrives in Washington. He might be assembly with Commerce Consultant Robert Lighthizer and Treasury Secretary Steven Mnuchin. This comes after a US delegation visited Beijing and tried to make headway on commerce relations.
That is additionally approaching the heels of the discharge of Australia’s NAB Enterprise Confidence Survey. The info fell in need of expectations and despatched the Aussie decrease.
Efforts to succeed in an settlement is perhaps additional difficult after the US Division of Justice filed an indictment towards Chinese language tech big Huawei after the arrest of its CFO Meng Wanzhou. She was arrested in Canada, and the US has formally requested extradition for her to face prison prices within the US.
Each international locations are going through their very own home obstacles. The US solely just lately ended the longest-recorded authorities shutdown that ended up costing the financial system billions of . Financial knowledge popping out of China has signaled that the Chinese language financial system is slowing with the assistance of the commerce wars weighing on efficiency. There’s additionally the difficulty of a rising default on company debt.
In opposition to this backdrop, the Australian Greenback could also be significantly delicate, given the depth of the scenario and the approaching March 1 deadline earlier than Trump might impose tariffs as much as 25 %. If talks between Beijing and Washington go poorly, promoting stress is prone to acquire momentum.
AUD/USD – One-Hour Chart
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— Written by Dimitri Zabelin, Jr Foreign money Analyst for DailyFX.com
To contact Dimitri, use the feedback part under or @ZabelinDimitrion Twitter