Beef war between Australia and China
Christophe Chevalier May 12, 2020 1:43 AM
China has decided to suspend beef imports from some Australian abattoirs but AUD remains resilient.
Australia is very closely linked to Chinese economy and dependent of Chinese imports. But this morning, following Australian critics of China’s management of the Covid-19 outbreak, China decided to suspend beef imports from some Australian abattoirs. Adding to this, April NAB Business Confidence was released at -46 (vs -75 expected).
From a technical point of view, on a daily chart, AUD/USD remains on the upside despite a slight pull back this morning. Indeed, on a longer term view, it has broken above a declining trend line and stands above its 50-day moving average (in blue) as the daily RSI stands within its buying rea. Readers may therefore consider the potential for further advance above horizontal support at 0.6250. The nearest resistance would be set at horizontal resistance at 0.6570 and a second one would be set at set at 0.6685 in extension.
Source: TradingView, GAIN Capital
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.