Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Forex – Threats of Escalated U.S.-China Trade War Hits Currencies

ForexSep 09, 2018 11:16PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The dollar was mixed on Monday morning in Asia

Investing.com - The dollar was mixed on Monday morning in Asia as the Australian dollar and the Chinese yuan continued to lose ground against the greenback.

The drops in the US dollar followed a threat by U.S. President Donald Trump on Friday that he is considering significant additional tariffs on Chinese imports that could potentially cover the entirety of U.S. imports. The threat sent both the currency and equities down.

The U.S. Dollar Index, which tracks the greenback against a basket of currencies, moved from losses to gains and was up 0.04% to 95.42 by 11:25PM ET (GMT 02:56). On Friday, all major equity indexes in the U.S. fell and Asian indexes were trading in the red Monday morning.

Trump threatened to impose tariffs on an extra $267 billion worth of Chinese products over and above tariffs on an $200 billion worth of Chinese goods for which public consultations have concluded. Trump said that the tariffs on the $200 billion of Chinese goods could “take place very soon, depending on what happens with them.”

The Chinese yuan weakened, with the USD/CNY pair rising 0.24% to 6.8612.

Down under, the Australian dollar hit a two-and-a-half-year low on Friday as the AUD/USD pair went up 0.01% to 0.7106, the first time the Australian dollar has traded below 71 US cents since February 2016.

The U.S. and China are Australia’s major trade partners. The ongoing trade dispute as well as the country's dependence on foreign investment have combined to push the currency lower.

“AUD broke below key technical levels on Friday and a test below $0.7 cannot be ruled out over the short term. Eyes will remain on trade headlines with any negative impacts to China likely to hurt AUD,” said Cherelle Murphy at ANZ. (Source)

A jump in the USD/CNH pair also helped push the Australian dollar down. The pair was trading up 0.02% to 6.8718.

Elsewhere, the USD/JPY pair was flat at 111.03.

Forex – Threats of Escalated U.S.-China Trade War Hits Currencies
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email