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    Afternoon Report – Tuesday 6th August




    China media says U.S. 'destroying international order', after currency-manipulator branding

    (Reuters 06/08/2019) - China’s official Communist Party newspaper said on Tuesday that the United States was “deliberately destroying international order”, a day after Washington branded Beijing a currency manipulator in a rapidly escalating trade dispute.

    The accusation, which followed a sharp slide in the yuan on Monday, has driven an even bigger wedge between the world’s largest economies and crushed any lingering hopes for a quick resolution to their year-long trade war.

    The dispute has already spread beyond tariffs to other areas such as technology, and analysts caution tit-for-tat measures could widen in scope and severity, weighing further on global economic growth.

    In a strongly-worded editorial, the People’s Daily said the United States was holding its own citizens to ransom, without mentioning the latest U.S. decision.

    The responsibility of big countries is to provide the world with stability and certainty while creating conditions and opportunities for the common development of all countries, according to the editorial.

    “But some people in the United States do just the opposite,” it said.

    The U.S. Treasury Department said on Monday that it had determined for the first time since 1994 that China was manipulating its currency, taking the trade row into uncharted territory and adding to frenzied selling in global financial markets.

    “Naming China a currency manipulator could open the door for U.S. tariffs to eventually increase to more than 25% on Chinese goods,” according to a note from DBS Group Research.

    “Apart from naming China a currency manipulator, Trump’s election campaign pledge was to lift import tariffs to 45% on China.”

    China no longer expects goodwill from the US – Global Times

    (FXStreet 06/08/2019) - The Editor-in-chief of Chinese and English editions of the Global Times, Hu Xijin, tweeted last minutes, offering his take on the US-China trade escalation, with the key comments found below.

    “Since the US has imposed tariffs on Chinese goods, the label of currency manipulator is seriously devalued in its impact. The trade war has been protracted to now, the US has put the biggest card on table, China is relieved. Now fight, China no longer expects goodwill from the US."

    Despite a slight improvement in the risk sentiment, the latest US Treasury report, calling China currency manipulator, continues to keep the US-China trade tensions intensified and keeps the recovery in the risk assets limited.

    RBA: Will adjust policy if needed to support sustainable growth

    (Reuters 06/08/2019) Following are the key headlines from the August RBA monetary policy statement:

    To adjust policy if needed to support sustainable growth.

    Rates to remain low for an extended period of time. To monitor developments in labor markets closely.

    Outlook for global economy remains reasonable. Conditions in housing market remains soft.
    House prices are stabilising in Sydney and Melbourne.

    Australian economy expected to grow at 2.5% in 2019.

    AUD is at its lowest level in recent times.

    To take longer-than-expected for inflation to reach 2%.

    Will ease monetary policy further if needed.


    Below are Trading Central's Intraday preference recommendations. Short (SELL) positions and long (BUY) positions have two targets issued which may be used as take profit levels. Above or below a certain figure indicates the pivot level which may be used as a level for stop loss.

    EURGBP 30 Minute – Sell below 0.9258, target 0.9157.

    This is general advice only and does not take into account your personal circumstances. “It is the Policy of ForexCT to recommend the use of stop/loss function to reduce risk of significant losses to customers.

    USDJPY Daily – Short positions below 107.95 with targets at 105.60 & 104.80.

    CRUDE OIL Daily – Short positions below 58.70 with targets at 50.60 & 46.70

    NIFTY Daily – The downside prevails as long as 11060 is resistance.

    SILVER Daily – Long positions above 15.9500 with targets at 16.6500 & 17.0000.

    ASX 200 Daily – Short positions below 6715.00 with targets at 6320.00 & 6210.00

    NIKKEI Weekly – Short positions below 22350 with targets at 20300 & 18950.

    This is general advice only and does not take into account your personal circumstances. “It is the Policy of ForexCT to recommend the use of stop/loss function to reduce risk of significant losses to customers.

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    Risk Warning
    Trading FX and CFDs involves a substantial degree of risk and should only be undertaken with risk capital. Please consider our PDS and FSG before trading with us. A copy can be found on our website Forex Capital Trading Pty Ltd provides general advice that does not take into account your objectives, financial situation or needs. Investors do not own or have rights to underlying assets. Forex Capital Trading Pty Ltd is regulated by ASIC (AFSL 306400), ABN (69119086270). Forex Capital Trading Pty Ltd’s AFS license and Australian regulation only applies to the financial services being provided in Australia only.

    Posted: August 06, 2019 | 7:17 AM