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    Morning Report – Friday 9th August




    U.S. confirms light soy, wheat, pork sales to China before latest tariff threats

    (Reuters 09/08/2019) - China bought small amounts of U.S. soybeans, wheat, sorghum and pork last week ahead of the latest escalation of trade tensions with Washington, according to U.S. government data issued on Thursday, in what may be the last American farm commodity sales to China for the foreseeable future.

    China’s Ministry of Commerce said this week that purchases of U.S. agricultural products by Chinese companies have been “suspended.”

    With Chinese buying on hold, U.S. exporters will instead focus on shipping orders made earlier this year when the two sides appeared headed for a deal, a list that includes more than 4 million tonnes of soybeans and nearly 103,500 tonnes of pork.

    Tensions escalated after Washington branded Beijing a currency manipulator and threatened to impose 10% tariffs on $300 billion in Chinese imports, starting on Sept. 1.

    “Chinese private buyers are not going to be making any U.S. purchases with a government ban in place,” said Dan Basse, president of AgResource Co. “These are the last sales we are going to see unless there’s some thawing or some movement in the U.S.-China trade negotiations.”

    AUD/USD weakens amid trade/political news ahead of key catalysts from RBA, China

    (FXStreet 08/08/2019) - With the US exerting additional pressure on China, AUD/USD remains on the back foot around 0.6800 during the initial Asian session on Friday.

    As per the latest news report from Bloomberg, the US delays licenses to do business with China’s Huawei. One American News Networks (OANN) offers another news that says that the US is considering ending talks with China and further sanctions like stopping visas of Chinese students, removing Chinese authorities from international organizations if Beijing uses the military to crackdown on Hong Kong protests.

    China is Australia’s largest customer and hence any negative news for the dragon nation weigh on the Australian Dollar (AUD). The reports gain additional attention during the present times when the US and China are at loggerheads over the trade deal.

    The Aussie pair recovered on Thursday, despite the US banning some of the Chinese companies’ products for government departments, after China’s trade data pleased Antipodeans.

    It’s an important day for the Aussie traders as it comprises speech from the Reserve Bank of Australia’s (RBA) Governor Philip Lowe, the central bank’s quarterly monetary policy statement and China’s July month inflation data.

    While YoY release of China’s Consumer Price Index (CPI) isn’t expected to deviate from 2.7%, likely improvement in MoM figure, to 0.2% versus -0.1%, can lure buyers. Elsewhere, investors will keep an eye over RBA signals to predict chances of further rate cuts while trade/political news to offer background music.

    Technical Analysis: Buyers targeting May month low of 0.6862 will be on the lookout of a sustained break beyond 0.6831/32 area comprising June and July month bottoms. Alternatively, 0.6750/45, 0.6700 and 0.6677 could flash on sellers radar during further declines.

    US delays Huawei licenses after China halts crop buying

    (FXStreet 09/08/2019) - During initial hours of Friday’s Asian trading, news crosses wires, via Bloomberg, that the US delays licenses to do business with China’s Huawei after the dragon nation halts crop buying from it.

    The news report relies on its sources while saying that there were around 50 requests recieved for the license to do business with the Chinese company during last week.

    FX implication: In response to the same, safe-havens like Japanese Yen (JPY) and Gold portrayed an uptick whereas Australian Dollar (AUD) slipped after the news.


    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 – The downside prevails as long as 0.9247 is resistance.

    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.

    SILVER 30 Minute – Long positions above 16.8700 with targets at 17.2100 & 17.3200.

    GOLD 30 Minute – short positions below 1511.00 with targets at 1494.00 & 1489.00.

    WHEAT 30 Minute – The upside prevails as long as 490.25 is support.

    CRUDE OIL 30 Minute – Long positions above 52.27 with targets at 53.15 & 53.75.

    SP 500 30 Minute – Short positions below 2970.00 with targets at 2910.00 & 2880.00.

    HANG SENG Daily – Short positions below 26920 with targets at 25400 & 24550.

    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.

    Economic Announcements
    (times in AEST)

    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 09, 2019 | 6:18 AM