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30 Oct 2019
3 min read

US And China’s Trade War Latest

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Written by OspreyFX News Team

The US and China’s Trade war latest: Progress made in US-Sino conversations

The Chinese government confirmed to the Xinhua news agency about progress in the trade agreement negotiations with the United States. Stating that part of the technical consultations has been completed. “In the telephone conversations, the two parties agreed to adequately address each other’s central concerns and confirmed that technical consultations on the part of the text of the agreement have been completed,” the agency said. Both nations reached an agreement on the importation of poultry meat produced in China. The equivalence of the systems for monitoring catfish products, and application of the public health information system of meat products.

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Washington supports the current conversations

US President Trump emphasised that the negotiations are on track and that “a lot of good things are happening now. China desperately wants an agreement.”

The talks between officials of both countries will soon continue. With the aim of reaching the final agreement that Donald Trump and his Chinese counterpart, Xi Jinping, will sign during the summit of the Asia-Pacific Economic Cooperation Forum (APEC). Taking place in Santiago De Chile between November 16th and 17th.

USD/JPY is still bullish. The pair keeps its positive tone across the board, in the hopes of a possible deal between Washington and Peking. According to the H4 chart, it managed to break above a resistance zone of 108.71, opening the doors to potentially reaching the 109.22 level, where a supply region is located. If it gives up, a leg higher is expected to take place, at least towards the 109.90 neighbourhood.

Overall, USD/JPY is trading within a bullish channel drawn from the lows of August, favouring the bulls’ dominance. Also, the 200 SMA is helping to provide dynamic support, as it did in the first half of October. However, if a breakout below 108.27 happens, then a bearish continuation could go towards the 107.59 area, where the lower band of the channel lies. The RSI indicator remains in the positive territory, while the Momentum oscillator is turning flat, favouring further consolidation over the coming days.

China’s PBOC could be the first to launch a new digital currency

CCIE China continues to make headlines and not only because of the trade war. In the crypto sphere, Chinese President, Xi Jinping, was in favour of developing technology within the nation. Which means an important step for crypto in the country. This comes with the understanding that there have been significant barriers in China when it comes to advancement in the matter. Now, the main news involves the Vice President of the CCIE, Huang Qifan, who was confident that the country’s central bank will win the race to create the first digital currency.

These comments were issued in the context of the 2019 Bund financial summit in Shanghai. Qifan expressed dissatisfaction with the current dependence on the SWIFT and CHIPS payment systems managed in the United States. Renminbi, on the other hand, can circulate internationally.

“SWIFT is an obsolete, inefficient and expensive payment system. Since the establishment of SWIFT 46 years ago, the technology has been slowly updated and the efficiency is relatively low,” said the CCIE Vice President.

Bitcoin’s short-term outlook

The cryptocurrency has been trading inside a bullish pattern above the key support around $9,351.89. Now, there is an ongoing consolidation capped by the resistance level of $9,775.93 on the upside.

A breakout above such an area could open the doors to consolidate above the $10,000 handle, pointing to the $10,411 level on a first degree. On the flip side, there are higher chances of a deeper corrective move below the support zone of $9,351.89. If such a scenario happens, then a downside continuation could go towards the $8,663.29 level, ahead of the 200 SMA at H4 chart.

The RSI indicator maintains its bullish tone and the Momentum oscillator remains in an upside’s extreme area.