US-China Tensions to Amplify Current AUD/USD, S&P 500, Oil Volatility?

Speaking Factors – Will US-China Commerce Warfare Fears Amplify Current Volatility in Monetary Markets?

• AUD/USD, S&P 500, crude oil volatility has been rising of late
• Commerce warfare fears could also be standing apart for extra urgent points
• Will US-China tensions amplify these strikes in monetary markets?

Might US-China tensions amplify current volatility that has rocked monetary markets? It’s price noting that whereas issues over the commerce warfare could also be fading amid the coronavirus outbreak, the following try at world financial restoration, and forward of the US presidential election, the menace may be very a lot nonetheless there. How can this influence belongings such because the growth-linked Australian Greenback, haven-linked US Greenback, S&P 500 and crude oil costs?

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Within the recording above, I recap US-China commerce warfare developments since 2017. I took a have a look at how that impacted world progress estimates and manufacturing PMI knowledge. How did the Federal Reserve (Fed) reply to the threats that tariffs posed to not simply home, but additionally exterior progress? With financial coverage at extraordinary accommodative ranges, is there ammunition left to counter rising US-China commerce woes now?

The latter may rely upon how this 12 months’s US presidential election unfolds. At this second in time, it appears China is falling behind on buying agricultural merchandise as outlined within the phase-one commerce deal. Current rhetoric from President Donald Trump about decoupling from China has additionally unnerved traders. What different developments between the US and China ought to merchants maintain a watch out for as November nears?

AUD/USD, S&P 500, US Greenback Versus World Manufacturing PMI Since Late 2017

— Written by Daniel Dubrovsky, Forex Analyst for DailyFX.com

To contact Daniel, use the feedback part beneath or @ddubrovskyFX on Twitter