Here are some quick updates of the day that a forex trader must know in order to apply the right forex trading strategy.
Yesterday, Agriculture Minister Sonny Perdue said the United States could hardly apply additional tariffs on $160 billion of Chinese goods. Chinese officials are expecting a similar outcome, predicting that President Donald Trump will delay the tax increase as a threat, giving more time to negotiate a temporary trade deal that both sides have. are all confirming that the results are near. Both countries, keeping in touch almost daily, have also come closer to an agreement on re-adjusting existing taxes. But instead of eliminating it completely, the focus of the deal was to reduce the tax rate that was in effect. So far, the United States has added a 25% tax rate to about $250 billion of Chinese products and a 15% tax on other $110 billion of imports during the 20-month trade war.
The stock market in Asia are ready for another quiet start as investors are arguing over whether America and China would come to a final trade deal before the tariff deadline. Treasury bonds dropped before the Federal Reserve meeting yesterday, while the Japanese and Australian futures markets were unchanged at the higher rate than Hong Kong. The S&P 500 index decreased below average trading volume as investors still had to "digest" mixed signals about the possibility of new tariffs. The US Dollar was mixed in with the G-10 currencies. On the other hand, crude oil prices were volatile.
Let's go to other countries. The Sterling pound increased just two days before the Brexit-dominated general election and a few days before an important political poll. The euro rose. The European bonds, however, tumbled as the economic data from France and Germany exceeded investors' expectations. Find a good forex broker to trade now.
Westpac Bank Group is preparing for a eventful annual meeting on Thursday. Its shareholders are about to reproach lenders for accusations they have violated the largest money laundering law in the history of Australia. The influential proxy advisors and the association of local minor shareholders intend to vote in protest against the pay report following voting recommendations and to re-elect some new directors.
However, the bank might have avoided the threat of "knocking" the board after no one was willing to stand behind a move so radical like this. Several power pension funds also stepped in to support the Westpac board because they think the bloodshed is enough ... On Monday, Westpac said it is prepared to acknowledge a great number. The allegations and "determination will resolve" the problem with the Australian Center for Analysis and Transaction Reports.
According to currency analysts' forecasts, the Australian dollar is moving towards 2020 with volatility due to the uncertainty surrounding worldwide growth and trade/interest rates. According to Rabobank and Nomura Holdings Inc., the Australia Dollar has fallen approximately 5% to 65 cents in December, declining due to economic growth and a moderate central bank. Others, however, disagree: according to Monex Europe Ltd., the Aussie could rise to 78 cents (14%) during the US-China trade war.
The head of market analysis at Monex, Ranko Berich, said in London that trade tensions are the biggest risk to the Australian dollar. "We can see signs that the world's two largest economies are about to reach an agreement and that the AUD will take advantage of the completion of the first phase trade agreement," he said. The Australian dollar fell around 3% this year as this trade war between the United States and China weakened risky assets, and the Aussie plummeted due to its role as a proxy for the Chinese economy. This currency has dropped to the lowest in ten years of 66.77 cents in August and traded at the end of Sydney's session yesterday at 68.29 cents.