Commodity Currencies In Demand As Trump Delays China Tariff Hike

MyFXspot.com trade ideas

  • EUR/USD: long at 1.1320, take profit at 1.1470, stop-loss 1.1255
  • USD/CAD: short at 1.3350, take profit at 1.3010, stop-loss 1.3485
  • AUD/USD: long at 0.7145, take profit at 0.7350, stop-loss 0.7050
  • XAG/USD: long at 15.50, take profit at 16.50, stop-loss 15.00

Market Overview

President Donald Trump said he would delay an increase in U.S. tariffs on Chinese goods thanks to "productive" trade talks and that he and Chinese President Xi Jinping would meet to seal a deal if progress continued.

The announcement was the clearest sign yet that China and the United States are closing in on a deal to end a trade war that has slowed global growth and disrupted markets. Trump had planned to raise tariffs to 25% from 10% on USD 200 billion worth of Chinese imports into the United States if an agreement between the world's two largest economies were not reached by Friday.

Commodity-linked currencies gained on Monday after U.S. President Donald Trump confirmed he would delay a planned hike in tariffs on Chinese imports.
The Australian dollar, seen as a proxy for China risk because of Australia's dependence on Chinese demand for its exports is up by more than 0.7% today. The pair broke 7-day exponential moving average (at 0.7138) today. Daily RSI is biased up and a long lower wick is in place on February's candle. The next resistance level is February 21 high at 0.7207. We remain long.'

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