Good morning Traders!
In signs that the cold freeze in the relationship between Australia and China is potentially
coming to an end, Australia Foreign Minister Penny Wong met with her counterpart in
Beijing, and Chinese President Xi Jinping exchanged warm messages with Anthony
Albanese the Prime Minister of Australia.
Aussie Dollar On the Move
The potential warming of the relationships between the two nations, could affect the
movements on the Aussie dollar. As Australian industries that previously suffered from
China’s trade constrains, may once again, be able to sell to the vast market that is the
Chinese consumer.
As the news broke out, we saw moves in the Aussie dollar, which strengthened against
many of it’s trading partners, and on AUDNZD even broke the Daily downtrend that it was
in since the beginning of October.
ASX 200 Bouncing of Support
The news has also seen the ASX 200 responding with a bounce of the area around 7000,
which has been a strong level of Support and Resistance in the past, and being a round
number, it is also a psychological level. (Think about item’s pricing, there’s a psychological
reason why an item may be priced at $9.99 and not $10.00).
For the coming days, I’ll be keeping a close eye on the Aussie dollar crosses as well as
the Australian Index, the ASX 200 for potential moves.
Happy Trading!
