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AUD/USD struggles to justify trade-positive headlines amid broad USD strength

Despite news of Chinese goodwill gestures to safeguard the US-China deal, AUD/USD remains below 0.6800 by the press time of early Wednesday.

The Aussie pair initially popped to day’s high of 0.6805 on the South China Morning Post (SCMP) news that China is looking to buy more agricultural products from the US after President Donald Trump signaled readiness to reject bad deal at the United Nations General Assembly (UNGA). Also supporting the optimism was a headline that profits of China’s state-owned companies rose 6.1% YoY.

However, the quote refrains from further upside as the US Dollar (USD) remains as bulls’ favorite amid political challenges to the US. Among them, inquiry to impeach the US President Trump and the US-Iran tension seems to acquire the front-line. Further, China’s Foreign Minister Wang Yi fired some worrisome statements indirectly the US to not interfere in the affairs relating to Hong Kong also push investor towards the greenback.

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