China has banned imports of Australian coal, shocking the AU Dollar

China has banned imports of Australian coal, shocking the AU Dollar

The dollar index advanced to a two-month high last week although demand for the U.S. currency has recently faded on hopes that the latest round of discussions between the world's two largest economies would help end their trade dispute.

"Prices for low sulphur premium coals in particular would rise as importers scramble to replace Australian coals".

"Australians do a lot of trade with our giant neighbour to the north, however, we should be calm about this move".

The dollar gained against the yen and cut losses versus the euro on Wednesday after the Federal Reserve, in the minutes of its latest policy meeting, said the US economy and its labor market remained strong, prompting some expectations of at least one more interest rate hike this year.

"China's customs assesses the safety and quality of imported coal, analyses possible risks, and conducts corresponding examination and inspection compliant with laws and regulations", he said.

Against the Japanese yen, the dollar was about 0.1 percent lower at 110.765 yen, moving off a seven-week peak of 111.13 reached last week.

Shares of resources fell after report that customs at China's Dalian port banned imports of Australian coal and would cap overall coal imports from all sources.

Mr Birmingham urged caution on the issue as he added: "It's important to reiterate. that we went through a period of some similarity late last year but when all that was done and dusted both the value and volume of our coal exports in that fourth quarter last year to China were significantly higher".

When asked about this report, ministry spokesperson Geng Shuang said that China's Australian coal imports continue as normal.

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The dollar plunged more than 1% on the initial wire reports of the ban from the critical five Dalian ports, which threatens to derail an important swing market for Australian coal exporters.

However, concerns persist over the lack of liquidity in the spot market and therefore its transparency, though the emergence of trading platforms such as Global Coal in recent years have improved things.

LONDON, Feb 22 (Reuters) - The euro held near a two-week high on Friday as investors waited for signs of how the euro zone economy is faring, while the Australian dollar rebounded after China denied it had banned imports of the country's coal. The pound stretched its overnight rally and rose to a two-week high of $1.3077. He didn't say whether China was targeting Australia specifically. The dollar eased against the yen after trading up against the safe-haven currency for the past few sessions. China is expected to agree to buy more United States goods as part of a deal being brokered by negotiators in Washington this week.

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

'I wouldn't jump yet to the conclusion that this is something that is directed at Australia.

"For now, Australian coal can clear customs", he said, declining to be named because of company policy.

According to the Sydney Morning Herald, trade talks between the Australian and Chinese government over coal imports have already been taking place concerning metallurgical coal and coking coal.

"We should be in a better position by this time tomorrow because the Chinese realise that this is a very significant issue and they probably don't want to see it on the front pages any more than we do".

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