• This morning, China has spooked its trading partners by weakening the fix on its daily Renminbi reference rate. Monday saw some positive behaviour on the expectation of stimulation from China, but not this. The move has hit the Australian Dollar hardest, with the Aussie pairs generally down over 1%.
• The NZD/USD is trading lower in sympathy.
• Elsewhere, the Euro is under pressure ahead of today’s German ZEW economic sentiment data.
• Gold is slipping back as the Dollar index advances.
• Meanwhile the S&P 500 is giving back much of yesterday’s advance.
Coming up today:
• Coming up today, we have German ZEW economic sentiment at 10.00.
• Preliminary US unit labour costs follow at 13.30
Trade Idea:
The Australian Dollar is still struggling and dependent on Chinese demands from raw materials. Today’s devaluation of the renminbi is more of a sign of China problems than a likely stimulant of Aussie growth.
As such, there could be more downside to come for the AUD/USD.
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
China Weakens Renminbi
Morning Report: 07.00 London
• This morning, China has spooked its trading partners by weakening the fix on its daily Renminbi reference rate. Monday saw some positive behaviour on the expectation of stimulation from China, but not this. The move has hit the Australian Dollar hardest, with the Aussie pairs generally down over 1%.
• The NZD/USD is trading lower in sympathy.
• Elsewhere, the Euro is under pressure ahead of today’s German ZEW economic sentiment data.
• Gold is slipping back as the Dollar index advances.
• Meanwhile the S&P 500 is giving back much of yesterday’s advance.
Coming up today:
• Coming up today, we have German ZEW economic sentiment at 10.00.
• Preliminary US unit labour costs follow at 13.30
Trade Idea:
The Australian Dollar is still struggling and dependent on Chinese demands from raw materials. Today’s devaluation of the renminbi is more of a sign of China problems than a likely stimulant of Aussie growth.
As such, there could be more downside to come for the AUD/USD.
A good way to play this is a LOWER trade predicting that the AUD/USD will close below 0.7250 within 20 days for a potential return of 164%
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
Summary:
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