Beef war between Australia and China

Australian flag
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.
Market chart tracking decline for AUD to USD. Published in May 2020 by
Source: TradingView, GAIN Capital

Related tags: Forex Forex Australia

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