AUD/NZD bulls taking back control in ascending channel

• AUD/NZD remains solid with solace found in US and Chinese language.  
• The commodity markets which have remained under pressure.

AUD/NZD remains in an ascending channel and is higher in Tokyo by 0.14% having travelled between 1.0587 and 1.0613 with bulls stepping in on a less negative climate following some reeling in from both China and the US over trade.  

During a press conference after the conclusion of the Group of 7 meeting in France, Trump said that he thinks that China wants to make a trade deal “very badly.” and when he was asked if he would considering delaying or cancelling tariffs on China, the president said “anything’s possible.” This lifted the mood and helped US stocks to recover the losses made on Friday. The Dow Jones Industrial Average,  DJIA, climbed 269.93 points, or 1.1%, to 25,898.83, while the S&P 500 index added 31.27 points, or 1.1%, to 2,878.38. The Nasdaq Composite Index put on 101.97 points, or 1.3%, to 7,853.74. On Friday the Dow tumbled 623.34 points, or 2.4%, to end at 25,628.90, leaving the blue-chip gauge with a 1% weekly decline.

Commodities remain in the dumps

However, a telling sign that we are far from out of the woods with this trade risk is with the  commodity complex faltering. “The  ANZ China Commodity Index  finished the day strongly, rising 1.5%. It was driven by another rally in hog prices, which pushed the agriculture sector up 4.3%. The energy sector closed down 0.7%, amid a volatile session in the crude oil market. Bulk commodities were also weaker, falling 0.5%. The political uncertainty helped support the precious sector, with gold holding onto last week’s gains. Industrials were unchanged,” analysts  

AUD/NZD levels