By IFCMarkets
China may reduce raw material exports amid falling GDP
China’s GDP fell in the 1st quarter of 2020 by 6.8% in annual terms. This was the first time since 1994. Compared to the 4th quarter of 2019, the decrease was 9.8%. Chinese industrial production slid down by 8.4% in March. This is noticeably better than the forecasts (-10%) and the February figures (-13.5%). China is the main buyer of Australian coal, iron ore and non-ferrous metals. The share of Australia’s exports to the PRC is about 30%. An additional negative factor for the Australian dollar was the April meeting proceedings of the Reserve Bank of Australia, which noted the possibility of further easing of monetary policy in order to maintain the national economy and the labor market.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Buy | |
| MA(200) | Sell | |
| Fractals | Sell | |
| Parabolic SAR | Sell | |
| Bollinger Bands | Buy |
Summary of technical analysis
| Order | Sell |
| Buy stop | Below 0,625 |
| Stop loss | Above 0,645 |
Market Analysis provided by IFCMarkets
