Effects of US China trade negotiations

mtb_rex 2018-12-03 05:42:21 UTC #1

Can someone dumb down what effects the recent US/China tariffs “deal” does for the USD. I would have thought this was a positive sign for the US and for China (and indirectly AUD pairs), but my USDCAD long trade is getting blown out of the water. What am I missing? Oil prices going up, which, all things being equal, is more positive for CAD, than a dragged-out trade/tariff war with China?

Oil prices of varying flavor all jumped, some as high as 5+%, per this article:

USDCAD didn’t hit any all time highs last week and we aren’t near any psychological resistance. I know the US China “deal” isn’t fleshed out, so literally anything can happen, good or bad, but it still appears as a positive sign.

Help a newb understand.

Thanks!

momoisnyc 2018-12-03 16:37:59 UTC #2

Well remember CAD was also affected by the USD/China Trade remember USA is a major trading partner for CAD. While both Canada & Australia are heavily commodity based, AUD is a major China partner inversely. Even if USD/China has a tiff AUD benefits from it the most because China does so much business with AUD.

Also it’s literally just 11:35AM on a Monday, things might take hours or days before it mulls into the charts. Give it some time I think.

mtb_rex 2018-12-03 19:51:33 UTC #3

Yea, thanks for the reply. I just need to be more patient and get off those 1hr charts!

momoisnyc 2018-12-03 20:04:10 UTC #4

Haha I know I run off the 1hr charts, sometimes it’s best to go focus on other stuff while the charts argue it out as I say.

mtb_rex 2018-12-03 20:11:52 UTC #5

Absolutely. They suck me in, and although I know it does me no good to sit there and watch them, especially when I’m in a trade (and more so when the trade is going against me) I continuously find myself doing it.

momoisnyc 2018-12-03 20:13:46 UTC #6

Had that issue the first time, so what I did was set SL & TP and put my phone on silent for the first 2-3 weeks. After that I’ve had more self control & noticed that I had a lot of trades go against me then swoop in for the profits at the end.

Baldursufate 2018-12-22 18:17:00 UTC #7

Markets will always incorporate news into the currency price. I also don’t like when it happens so “out of nowhere” and we all stay surprised but eventually, it happens from time to time. I will definitely leave some time for markets to calm down and find new level for AUD

mtb_rex 2019-01-07 17:26:57 UTC #8

Interesting idea. I’ll see if I can work on something like that, thanks!