- FX is in a state of flux over the trade negotiations.
- China is committed to resolving economic, trade frictions in a calm, rational and cooperative manner.
Yi, China’s Foreign Minister, has crossed the wires in recent trade and has warned that tariffs, provocation of trade could lead to a global recession while repeating that China is committed to resolving economic, trade frictions in a calm, rational and cooperative manner.
Additional comments:
“China opposes hegemonism or bullying in international affairs.”
“Unilateralism and protectionism pose major threats to international order.”
“Erecting walls will not resolve global challenges, blaming others for one’s own problems does not work.”
“Tariffs and provocation of trade may even plunge world into recession.”
“China committed to resolve economic, trade frictions in a calm, rational and cooperative manner.”
FX implications:
FX is in a state of flux over the trade negotiations for there is just too much uncertainty for any trend to develop one way or the other. AUD is plagued by such uncertainty and with the Reserve Bank of Austalia around the corner, expected to cut interest rates, the fundamentals are stacked against the bulls.
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