AUD suffers as US hikes tariffs aimed at China into Davos and Nafta

by | January 23rd, 2018, 04:44:32 | Australia, News, Sticky 4, US

US imposes new tariffs on foreign solar and washing machines on 23.01.2018

  • China and South Korea have condemned the move to set as much as 30% import duties as Bloomberg reports.
  • South Korea and China reacted pretty promptly saying Trump is steering into a trade war
  • This comes as Trump is expected in Davos and Nafta talks get underway. The snow will be melting un the heat of the debates

First victim on the Fx side is the AUD today in a ” what’s bad for China is bad for Australia” reaction. AUDUSD trades down to 0.7987 writing this from 0.8025 levels before the news and reactions came in .
For the time being it looks like having been an excuse for the AUDUSD longs to cash in some profits but if we’d get an extension sub 0.7950, there may be some more in it.
It also does raise the question whether US is  to hardline any debates around Nafta this week as well. The atmosphere did seem a little friendlier off late but such a move may presage of tougher negotiations.
It makes for an exciting week again, adding to ECB on Thursday. Watch the headlines folks and remember CAD trades likes an EM currency these days , swings are sometimes violent.
Levels on USDCAD to watch for breaks 1.2385-1.2520

K-man
Latest posts by K-man (see all)

Pin It on Pinterest