- Chinese government offers new waivers to several companies to buy US soybeans without retaliatory tariffs
- US and Chinese negotiators are expected to hold another round of face-to-face talks after a Chinese holiday
- AUDJPY spikes on higher risk sentiment as a result of the comments
The news released by the Chinese government regarding new waivers offered to some country’s public and private companies to buy US soybeans has clearly improved risk sentiment this morning. As a consequence of the waivers, Chinese companies (state-owned buyers like Cofco and Sinograin as well as five other crushers) will be allowed to purchase up to 3 million tons of grain from the United States without being burdened with retaliatory duties. Moreover, as the report says some Chinese companies have already bought about 1.2 million tons of the commodity from the US on Monday. These comments are boding well ahead of another round of face-to-face negotiations expected to be held right after a public holiday in China between 1 and 7 October (National Day of the People's Republic of China). Following the revelations we have seen a moderate increase in risk sentiment which could be well captured by the AUDJPY. After approaching its crucial support, the pair has accelerated its rebound after the report from China. Subsequent resistance levels can be found nearby 73.2 and 73.5.
The AUDJPY is taking advantage of the report from China. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.