AUD / USD, Hang Seng, CSI 300, US Dollar, Fed, Delta Option, RBNZ – Call Points
- ChinIf stocks start to widen, where next?
- US dollar strength in goods and related currencies continues
- Rassets on hind legs before the hawk-based Fed next week at Jackson Hole
Hang Seng and mainland China stock indices moved into a deep deficit on Friday as the local regulator continues to suppress the non-technical sectors. The scope of stricter rules seems to be growing, adding a degree of risk to the markets. The impact of the delta option will add to the downturn as commodities and related currencies are under pressure as the US dollar continues to strengthen. The closure of the whole area and the closure of ports are a matter of concern.
AUD, CAD and NZD everyone made new lows this week. NZD found some support today after RBNZ Governor Orr said New Zealand cash interest rates need to return to a neutral level of 2%. With this in mind, meeting the inflation and employment targets. An increase in interest rates in New Zealand in October may be inevitable due to such rhetoric if Delta does not catch up and the closure continues.
AUD / USD has continued to be lower and is now at a strong rate of decline. The cost of shipping iron ore rose to a ten-year high this week, and China closed several ports. As a result, iron ore prices collapsed.
The week’s quiet data finishing is likely to focus on the market’s Fed gathering in Jackson Hole next week. Although recent rhetoric has been considered weak, any Fed call could affect markets.
AUD / USD technical analysis
AUD distribution /USD 0.7290 shows an acceleration of the downward trend and opens the lowest potential test of 0.7010 in October last year. The strong correlation with the price of iron ore shows the impact of the Australian dollar and its susceptibility to trade with China, the world’s largest steel producer.
AUD / USD and SPACE ORE DELIVERY COSTS (BALTIC DRY FREIGHT INDEX) – daily schedule
– Written by Daniel McCarthy, Strategist For DailyFX.com
Use the or comments section below to contact Daniel @DanMcCarthyFX Twittisis