Forex Today: Huawei steals the show, Trump warns Iran and markets remain jittery

The US shifts soften its stance against China’s Huawei and also remains ready to talk to Iran.
Lesser economics on hand highlights political events as likely major market drivers.

Anil Panchal FXStreet

Forex today remained jittery during the early Asian session on Tuesday as Huawei held the spotlight and the US President Donald Trump commented on Iran. Traders now await minutes of the Reserve Bank of Australia’s (RBA) latest minutes followed by the Governor’s speech at a different platform.

Having witnessed a ban from the US, China’s Huawei can now do business with the US companies though for a short period of 90-days with a license.

Read: U.S. Commerce Department scales back restrictions on Huawei – Reuters

The US President Trump also crossed the wires while speaking on Iran. Mr. Trump said Iran has been very hostile but he is ready to talk with them when they’re ready. However, they would be met with great force if doing anything for which signs are absent until now.

Read Trump: Iran has been very hostile - WTI pops to $63.39 Asian high

While positive signals for Huawei pleased commodity-linked currencies like Dollars of Australia, New Zealand and Canada during early-day, crude oil benefited from the US President Trump’s comments.

Previously, the Wall Street closed mostly in negative as Monday’s spat between the US and China led the former’s tech giants dragged into the trouble and mark losses of technology shares. DJI30 lost 84 points (-0.33%) and S&P500 trimmed 20 points while Nasdaq dropped 114 points (-1.46%).

Read: Wall Street in the red as trade war hits US big names

Moving on, minutes of the RBA’s latest minutes and speech from Governor Lowe will be in the immediate focus of the market players. While RBA minutes may have little importance due to quarterly rate statement released after the meeting when the central bank refrain from a rate cut, RBA’s Lowe could offer meaningful insights on the bank’s future moves while speaking at the Economic Society of Australia Business Lunch, in Brisbane.

The economic calendar is light for Tuesday with the US existing home sales being the only release after RBA minutes to entertain market players.

However, that doesn’t stop markets from being volatile if political plays surrounding trade, geopolitical and Brexit offer any surprises and/or crucial information.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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