Trump politics 101

Before getting into today's European themes, I wanted to add more on the latest Trump tariff saga that was brought up during Asia:

  • US may now seek 25% tariffs on $200 billion in goods
  • Officials seeking ways to re-engage after talks stalled
  • The yuan down on the news

The ,arket question now becomes, will this spark a new round of trade hostilities?

Just keep in mind that this is Trump politics 101 and this public back and forwards is his negotiating tactic that helps both sides look strong within their own media.

This is yuan bearish (and as a result, aussie bearish), but as you can see on the following higher time frame chart, it's weakened by their own control, so don't get carried away:

My thinking is to keep a higher time frame view and that is:

Aussie dollar view:

  • Often used as a proxy for China plays
  • Bearish trend and retesting previous support as resistance