Commodities currencies struggle in early EU trade - Is the trade war effect wearing off?

  • AUD/USD is struggling today and may break the wave low support.
  • NZD/USD is also falling currently trading 0.40% lower.
  • USD/CAD has also pushed past the psychological 1.3200 resistance level

This morning in the EU session the likes of AUD, NZD and CAD are all struggling.

Over the last couple of weeks, there has been a rally in these currencies (maybe not CAD as much) as the trade war between the US and China seems to have softened.

Yesterday despite the two nations confirming they may roll back tariffs if the phase one deal is signed, the commodities currencies failed to break out of resistance zones.

Lets not only look at them against the USD. 

CAD/JPY this morning has pulled back from trying to break the 83.00 level. EUR/AUD has bounced off 1.60 where there was a trendline on the weekly charts and GBP/NZD has bounced off the 2.00 psychological level to the upside.

We must always remember how much of the bullishness is price in. Has the market got carried away?

Overnight economic advisor to Trump Navarro said that the only person who can confirm the tariff rollback is the US President.

He obviously is proud of himself about taking stocks to all-time highs and today he might confirm the tariff rollbacks so be aware of the headlines.

By all means, the rally in commodities currencies might not be over, we might have just been due a retracement.

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