Here’s something that may interest a few currency traders out there, especially those who like to dabble in the AUD/USD.
It’s a 30-minute chart of the AUD/USD (white) overlaid against the USD/CNY (red), offshore trade yuan, so far this week. The scale for the latter has been inversed.
If there was any doubt as to what’s been driving movement in the AUD/USD this week, there shouldn’t be now.
Despite a raft of economic data and an interest rate decision from the Reserve Bank of Australia, the movements in the offshore traded yuan against the greenback has been the only game in town.
Ahead of the introduction of proposed tariffs on Chinese imports to the United States on Friday, and with US markets on holiday today, it’s likely the yuan will remain the only game in town in the days ahead.