Aussies dwindle, Yuan neutral amid concerns of storm-tossed Chinese export


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Aussies dwindle, Yuan neutral amid concerns of storm-tossed Chinese export

On Monday, the 14th of January, 2019, the Aussies alongside, Kiwis carpeted the grudges of global risk appetite, as the Asian currencies fell on contracted Chinese exports. After data showed an unprecedented plunge in China’s December exports, market sentiments had soured seriously, the Australian Dollar closed Jan 14th, with a 0.22 percent plunge at $0.7196, while the Kiwis lost 0.15 percent to $0.6820 at yesterday’s market closure.

However, the Chinese Yuan somehow managed to mitigate its earlier losses and ended the day with a 0.10 percent gain, despite whacking worries of supply glut and a decline in both imports and exports. In fact, the Chinese Yuan kept gaining against American dollar on the first trading day of 2019’s second week, after its biggest weekly rise of 1.5 percent last week.

Referring to the US-China trade talk optimism behind this surprising rally despite catastrophic December data, A head of FX at Commerzbank, Ulrich Leuchtmann said, “The (yuan) rally is largely due to the optimism surrounding the (U.S.-China) trade talks.

As long as the yuan remains steady, we are unlikely to see a significant dollar rally overall. ” Again in the face of fanning risk appetite, the investors bet on safe-haven currencies and commodities like Japanese Yuan, alongside gold, as the American dollar index was down by 0.10 percent to 95.56 and, the Great Britain Pound secured a gain of 0.21 percent against US dollar after testing its initial resistance level at 1.2926, on a 60-day moving average. on Monday morning trading session ahead of a critical Brexit vote due on January 15th.