In the final quarter of 2018, the German economy stalled, narrowly dodging recession because the fallout from global trade clashes and Brexit threatened to heavily impact a decade-long expansion in the EU’s number one economy…
Daily news: escalation of the US-China trade wars and Draghi's speech
- US President Trump made a final decision concerning the US tariffs on Chinese imports. The United States trade representative (USTR) is going to apply 10% tariffs on about $200 billion of imported goods from China on September 24, and this rate will increase to 25% in January. Moreover, Trump mentioned that the third round of tariffs on approximately $267 billion of imports are being discussed. China is planning to reflect on this move by restricting the American investments in the country. However the USD index could not reach its last month highs and slid to 94.00 in the beginning of Tuesday.
- AUD/USD was affected by the new tariffs, experiencing a sell-off at the end of Monday, although the unchanged house price index, increased weekly consumer sentiment indicator and positive news from the meeting of the Reserve bank of Australia (RBA) strengthened the pair. Right now the resistance to keep an eye on is at 0.7230. Otherwise, it finds a support at 0.7140. If it’s broken, the next support is at 0.7080.
- The European central bank president Mario Draghi made a speech today. It didn’t contain any topics related to monetary policy and was mainly focused on the non-performing loans. The anticipation of the speech influenced EUR/USD, which tested the resistance at 1.1720. If it reaches the resistance level, the next resistance to focus on is at 1.1850. In the opposite situation, watch for the support at 1.1515.
- Manufacturing sales in Canada will be released today. The expected level is forecasted lover than in the previous period. Despite this fact, current situation on the market for USD/CAD demonstrates the bulls’ possible takeover. This is connected with the USD rise due to the escalation of the US-China trade wars. If the level of is not changed, the main focus should be on the resistance at 1.31. The support level is at 1.2960 for now.
- The kiwi increased, crossing the 100-period MA on H4 at 0.6597, while the country is waiting for the GDP release. The prime minister of New Zealand Jacinda Ardern said in the interview that she saw the preliminary GDP report and was impressed by it. This resulted in NZD/USD blow-off. However later she said, that she made a mistake. Right now, the resistance for the pair is at 0.6614. If the market turns bearish, the support is at 0.6537.
- Gold struggles to continue yesterday’s rise and reacts to the US trade talks with China as well. Right now it’s trading below its psychological level at $1200. The closest resistance is situated at $1204. Above this zone, the yellow metal can test the next resistance at $1213. If it drops, the support level is $1187.
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