05.08. 2019: US-China trade tensions escalate, JPY continues to grow (USDХ, JPY, AUD)

05.08. 2019: US-China trade tensions escalate, JPY continues to grow (USDХ, JPY, AUD)


The Japanese yen has regained ground again.
US-China trade war tension and the world’s economy slowdown raise concerns among traders.
That is why the yen rose abruptly against both the US dollar and the euro.
US-China trade conflict comes under the spotlight.
It seems that the trade war is likely to become the currency war.
China has weakened the yuan below the level of 7 to the US dollar for the first time in 11 years.
The devaluation of the yuan was the first response of the Chinese authorities to Donald Trump’s statements
about the readiness to impose new tariffs on China’s imports.
Amid market turbulence, investors prefer safe-haven assets.
Thus, gold rose by 1%, the yen advanced to a 7-month high.
At the Asian session, the USD/JPY pair is declining steadily.
The publication of sluggish statistics from Japan didn’t influence the pair’s direction.
The dollar/yen pair has already dropped to 105.94.
At the same time, experts believe that the pair’s fall below the level of 105 is unlikely.
The US economy is not so weak as to justify a more significant decrease in the US dollar’s quotes.
The Australian dollar was also affected by the announcement
of a new round of tariffs on China’s goods.
Despite positive Australia’s economic data, the AUD/USD pair is trading in the red
for the 10th trading session in a row.
This is the longest decrease since 2008.
During the Asian session, the AUD/USD pair was located at the level of 0.6771.
The 10-Year US Treasury yield shrank by 7.5 basis points after falling by 23 basis points last week.
This was the largest weekly decline in 7 years.
The US dollar dipped after the recent surge.
At the moment, it is trading at 97.98.
Market participants are again awaiting the key rate cut by the Fed in September.
There is a rumor that Donald Trump has announced a new round of tariffs
in order to force the Central Bank to ease its monetary policy once
again.

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