Greg Gibbs, founder, analyst, & PM at Amplifying Global FX Capital Pty Ltd, (AmpGFX) explained that the USA fired off its biggest missile yet in its trade war with China and has rolled up more artillery.
Key Quotes:
“There is little doubt that they are in for the long fight and this poses significant downside risks for Asian markets.”
“AUD has been a proxy for tariffs and rebounded on Tuesday, in-line with a bounce in Asian currencies and equities.”
“But the trade war suggests this reprieve may be short-lived. If you close one eye, the Australian economy is performing well, and the AUD looks cheap.”
“But if you open both eyes, the downside risk coming from China, housing and the next election is large.”
“The falling Australian housing market may bring to the surface more problems for banks over past lending practices.”
“New Zealand economic survey data is pointing to a weak second half and rising risk of significant further RBNZ rate cuts.”
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