The aussie slips as China announces a ban of Australia's second-largest export
The China coal-ban story is stealing the spotlight ahead of European trading, as it triggered stops in the Australian dollar and that is leading to the fall that we're seeing now. AUD/USD trades around the 0.7100 handle currently after touching a low of 0.7086.
I reckon if the pair can hold the support level around 0.7090, we could see some minor retracement in the session ahead. That said, the overall outlook remains bleak for the aussie and this story here will eat at optimism that the currency could potentially gain on the back of a US-China trade deal.
With the aussie sliding, it's inadvertently dragging down the kiwi as well. Risk sentiment is also slightly tempered with on the news as Chinese mainland stocks have turned back to negative, fearing that even a positive outcome from US-China trade talks may not necessarily improve overall trade in the Chinese economy if things like this are occurring.
As for other currencies, the dollar remains steady alongside the yen with both currencies pushing a little higher against the rest of the major bloc ahead of the continuation of trade talks in Washington later today.
