Dollar struggles ahead of Fed minutes, but gains on the yen

Asia shares steady after Fed minutes, Aussie rallies
Australian Dollar: Strong Jobs Data Not Enough to Prevent RBA Rate Cuts
Author

25 February, 2019

Reuters reported China's northern Dalian ports had banned imports of Australian coal and would cap overall imports for 2019 through its harbors at 12 million tonnes, with Australian miners the only ones to suffer from the import cuts.

Tensions arose in 2017 when Canberra accused Beijing of meddling in its domestic affairs, and the relationship suffered another setback previous year when Australia banned China's Huawei from its 5G broadband network.

Mr Birmingham urged caution on the issue as he added: "It's important to reiterate. that we went through a period of some similarity late last year but when all that was done and dusted both the value and volume of our coal exports in that fourth quarter last year to China were significantly higher".

China's Foreign Ministry Spokesperson, Geng Shuang, has said the decision is related to "environmental protection" and the government "conducting risk analysis". The correlation exists because the Antipodean unit is substantially underwritten by a mammoth bilateral commodity trade with China.

"I'm aware of unconfirmed and unsourced media reports and have asked our Ambassador in Beijing to urgently clarify their veracity", said Australia's Minister for Trade Simon Birmingham.

Reports that a key Chinese port was refusing Australian coal imports sent the dollar tumbling yesterday afternoon.

"They are putting pressure on us, along with New Zealand, because of our stances on Huawei", said Malcolm Davis, a senior analyst at the Australian Strategic Policy Institute in Canberra.

The minister tells Chris Smith, "We don't believe that China has banned Australian coal into China or into even a single port".

"We expect and would understand that the trade agreements that we have between Australia and China will continue to be consistently applied".

Major Companies Pull Ads from YouTube in Response to Pedo Problem
YouTube has terminated more than 400 channels on the video-sharing service for hosting comments from child predators. Watson said that some of the YouTube videos feature ads for big-name companies, including Disney.

Breaking! Sanders says he is running for US Prez
Bernie Sanders "has already won the debate in the Democrat primary, because every candidate is embracing his brand of socialism". The independent Senator finished runner-up to Hillary Clinton for the 2016 Democratic presidential nomination.

Cardi B makes history with best rap album Grammy
People were confused when the rapper thanked late rocker Tom Petty for sending a "big" bouquet after she snagged her trophy. Cardi also thanked a number of artists, including Chance the Rapper , Migos and SZA for contributing to her success.

The currency is being supported today by upbeat comments from Reserve Bank Governor Philip Lowe and easing concerns about China's ban on Australian coal imports.

Reuters reported that five harbours overseen by Dalian customs, Dalian, Bayuquan, Panjin, Dandong and Beiliang, would no longer allow Australian coal to be cleared.

However, concerns persist over the lack of liquidity in the spot market and therefore its transparency, though the emergence of trading platforms such as Global Coal in recent years have improved things.

Australia is now the world's biggest exporter of Coal and Anthracite, a high-quality and high-carbon-content type of coal.

Time to move your money?

"People should be careful about leaping to conclusions about this".

Japanese manufacturing activity contracted in February for the first time in two-and-a-half years as factories cut output amid shrinking domestic and export orders, a private business survey showed on Thursday.

"Sure, this might just be some little local difficulty - administrative problems in China logistically means this can happen - but more likely it may be some political power play at work in a state-controlled economy".

Oil prices made a turnaround from their earlier slip to see gains in the afternoon of Asian trade, with the worldwide benchmark Brent crude futures contract adding 0.1 percent to $67.14 per barrel.


More news