Sunday, 26 May 2019
Latest news
Main » GBP/AUD Close to Two-Week High Following China Coal Shutdown

GBP/AUD Close to Two-Week High Following China Coal Shutdown

25 February 2019

The Australian dollar recovered after falling more than 1% on Thursday, when Reuters reported the Chinese port of Dalian had banned imports of Australian coal indefinitely.

Tensions arose in 2017 when Canberra accused Beijing of meddling in its domestic affairs, and the relationship suffered another setback past year when Australia banned China's Huawei from its 5G broadband network.

He further added that, recently, there are certain environmental problems surrounding the coal imports.

When asked about the reported halt, Chinese Foreign Ministry spokesman Geng Shuang offered general comments that authorities sought "to safeguard the rights and interests of Chinese importers and protect the environment". The correlation exists because the Antipodean unit is substantially underwritten by a mammoth bilateral commodity trade with China.

To make up for any shortfall in Australian coal for power generation, known as thermal coal, traders said there was ample domestic supply, and also the option to import from Mongolia and Indonesia.

Birmingham also said that Australia's exports of coal to China in the fourth quarter of 2018 were higher in volume and value than in the same period in 2017.

Mr Cooper says the key two questions for the Australian coal industry are: how long are these restrictions likely to last, and why have they been imposed?

"It's not in China's interest to spook the markets, and this may be regarded as just a small shot over the bows of the trade ship", he said.

While imports of Indonesian and Russian coal would still be allowed, Australian coal was banned.

Australia banned Huawei in August past year, recently revoked the permanent residency of a Chinese billionaire over concerns that he's an agent of influence and is pressing the Chinese for access to Australian citizens and permanent residents held in prison or trapped in Xinjiang.

Tesla Model 3 Delivery in China Starts Earlier Than Expected
The others in the top five also are premium marques: Volkswagen AG's Porsche and Audi, followed by Toyota Motor Corp.'s Lexus. The website also reports another new feature for Tesla - Sentry Mode. "We're setting an extremely high bar for Model 3".

The media cited an editorial in the China Daily which said Prime Minister Scott Morrison was "irresponsible" when he alluded to Beijing being behind the cyber attack on the Australian parliament.

Griffin said Mongolian coal imports could rise substantially in order to replace Australian coals.

The Dalian port received seven million tonnes of that.

The BOJ does not really have a lot of options left even if it wanted to act, but the global trend-starting with the US, Europe, and Australia is moving toward central bank dovishness and the BOJ's stance is in line with the trend, said Koji Fukaya, president of a Tokyo-based securities dealer services provider.

Time to move your money? "They have commitments as a World Trade Organisation member and we are an important trading partner to each other and we want this relationship to be smooth and ongoing", he said.

No reason was given for by the Dalian Ports Group for the decision, and ostensibly cutting the 40 day clearing time.

"I would not jump to the conclusion that it is something directed towards Australia".

"If it were to be the sign of a deterioration in the underlying political relationship between Australia and China then that would be more concerning", he said.

Earlier this week, top coking coal exporter BHP said that China's import policies remained a source of uncertainty for the market.

GBP/AUD Close to Two-Week High Following China Coal Shutdown