📝China-Australia Trade Relief Is Helping AUD Vs Crosses: Westpac

Australia-China trade relations continue to thaw. Australian Foreign Minister Penny Wong announced that Australia would pause its World Trade Organization proceedings against China because while China has agreed to a 3-month review of its 80.5% tariffs on Australian barley exports. Australian wine exports may be next in line for relief.

The more encouraging mood in Australia’s diplomatic relations with its largest trading partner may not be evident in AUD/USD but it may be a factor helping the Aussie rebound against the Kiwi. The cross was 1.0710 before the RBNZ’s shock 50bp hike on 5 April which knocked it below 1.0600 but it starts this week above 1.08

On USD, after more than a month, AUD/USD finally traded outside the 0.6600 to 0.6800 range in Friday New York trade, only to quickly slide back to around 0.6700, where it starts the week.

- Westpac