Hot Topics:
- EURUSD – Trump announces he will impose tariffs on steel and aluminium imports.
- AUDUSD – Australian mining companies on alert for Trump tariffs.
Main currencies daily performance.
EURUSD – Trump announces he will impose tariffs on steel and aluminium imports.
The US President Trump has announced that he will impose tariffs on steel and aluminium imports as a step to protect the US industries. The duties to apply are 25% on steel and 10% on aluminium.
China reacted immediately and warned that they would reduce the imports of US soybeans, and The European Union has said that is considering taking action too. The New York Federal Reserve President William Dudley said that “raising the trade barriers would increase the risk of a ‘trade war’, which could damage the economic growth prospects around the world.”
On the technical side, when arriving at the second support of the weekly pivot (Weekly S2 1.21550), the Euro made a perfect reverse movement climbing more than 120 pips. We expect a bullish move for the single currency that can take it up to the weekly pivot level 1.23304, where it could begin to lateralise.
AUDUSD – Australian mining companies on alert for Trump tariffs.
After President Trump’s announcement to apply tariffs to imported steel and aluminium, the biggest beneficiaries will be the US production companies, which accused China, Russia and South Korea of unfair competition. On the other hand, one of the largest Australian mining companies, Rio Tinto, which exports mainly aluminium to the United States and Canada, will be affected by this measure unless Canada can dispute an exemption to Washington.
Technically, the AUD-USD pair entered a zone of potential reversal that coincides with a long-term bullish trendline, which concurs with the second level of weekly support. A new low at the weekly S3 level (0.76286), could give more strength to a reversal pattern.
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