- AUD/JPY drops from the highest in more than a week after the US President Donald Trump signed Hong Kong bill.
- The US-China trade relations will be in strain after the recent run of positive talks.
- Market sentiment was earlier benefiting from UK polls, USMCA talks.
AUD/JPY trimmed 30 pips to the low of 73.91 before taking rounds to 74.00 during early Thursday in Asia.
Bloomberg’s news that the United States (US) President Donald Trump signed the Hong Kong Human Rights Bill recently triggered the risk-off sentiment. The bill already crossed the US Congress but was waiting to be signed by President Trump before being the law. The bill requires, as per the Bloomberg, annual reviews of Hong Kong’s special trade status under American law – and sanctions against any officials deemed responsible for human rights abuses or undermining the city’s autonomy.
Read: US Pres. Trump signs Hong Kong Bill that will strain relations with China – Bloomberg
China has clearly condemned the US interference in its “One Country, Two Systems” motto ever since the US Congress passed the bill that will help Hong Kong protesters.
The gill gets signed around the times when the US and China are close to the much-awaited phase-one trade deal. Fearing the negative impacts of its, the US President Trump said, ” “I signed these bills out of respect for President Xi, China, and the people of Hong Kong.”
Markets were earlier cheering the YouGov MRP poll’s prediction favoring the United Kingdom’s (UK) ruling Tory party to have a lead in the December election. Also adding to the optimism were trilateral trade talks between the US, Canada and Mexico.
Looking forward, Japan’s October month Retail Trade will be the immediate catalyst for traders to watch. Though, major attention will be given to China’s response to the US President’s signing of the Hong Kong bill.
Technical Analysis
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