Money The Australian dollar has fallen sharply as trade fears flare again

11:16  11 july  2018
11:16  11 july  2018 Source:   businessinsider.com.au

China just recorded the largest trade surplus with the US on record

  China just recorded the largest trade surplus with the US on record <p>In what will do little reduce trade tensions between the two sides, China's trade surplus with the US jumped to $US28.97 billion, larger than the $US24.58 billion recorded in May.</p>Load Error

Wall St falls as weak techs offset energy gains. “We continue to believe that the US and China will avoid a dramatic increase in trade restrictions, given the detrimental impact such an increase would have on both economies,” Moody’s said.

The Australian dollar came under pressure on Tuesday, losing ground against all major crosses except the Canadian dollar . trade , the AUD /USD initially popped higher following the release of a subdued US CPI report for February, hitting a session high of .7897.

The Australian dollar is seen amongst other Australian coins.© Dave Hunt/AAP Image The Australian dollar is seen amongst other Australian coins. The Australian dollar was on track to close flat to higher on Tuesday, mirroring continued continued gains in other risk assets during the session.

However, that all changed just minutes ago following reports the United States is poised to publish a list of $US200 billion in new tariffs that will be applied on Chinese imports entering the country.

The trade war has escalated, as Trump promised prior to the introduction of the first round of tariffs late last week.

Here's the scoreboard as at 7am AEST.

AUD/USD 0.7459 , -0.0007 , -0.09%

Australia, New Zealand dollars dip on China slowdown worries

  Australia, New Zealand dollars dip on China slowdown worries <p>The Australian and New Zealand dollars eased slightly on Monday on news China had posted weaker-than-expected industrial production for June, raising fears of a slowdown there.</p>Load Error

The Australian dollar fell sharply across the board as trade war fears flared up again on Tuesday. Reports that President Trump is considering a crack down on Chinese companies investing in the US sent stocks tumbling.

Shares in Asia fell sharply and the euro sank to a 10-month low against the US dollar as concern about the political turmoil in Italy spread through international financial markets on Wednesday. Renewed fears of a trade war between the United States and China also contributed to the negative

AUD/JPY 82.83 , 0.08 , 0.10%

AUD/CNH 4.9583 , 0.0143 , 0.29%

The Australian dollar is charging higher as confidence improves around the world

  The Australian dollar is charging higher as confidence improves around the world The Australian dollar continued to surge on Monday, rising on a wave of improved investor confidence across the world.&nbsp; The Australian dollar ripped higher on Monday, rising on a wave of improved investor confidence across the world.

The Australian dollar fell heavily against most major crosses on Thursday Aussie rebounded on news the US will introduce new tariffs on steel and aluminium imports NAB: A potential trade war is negative for economies such as Australia

The Australian dollar fell against most major crosses on Tuesday. China will release major economic data midway through today’s trading session. “After the resignation of Chief Economic adviser Gary Cohn, Tillerson’s sacking reinforces the view that Trump has a ‘my way or the highway’ agenda,” said

AUD/EUR 0.6350 , -0.0002 , -0.03%

AUD/GBP 0.5620 , -0.001 , -0.18%

AUD/NZD 1.0911 , -0.0007 , -0.06%

AUD/CAD 0.9777 , -0.0002 , -0.02%

After dipping in Asia, the Aussie clawed higher in European and US trade, bolstered by continued gains in stocks.

However, that all changed late in the session as news hit that the US is about to announce new tariffs on Chinese imports.

According to Bloomberg, citing two unnamed sources familiar with the matter, the list could be released within the next few hours.

Before the US introduced $US34 billion worth of tariffs on Chinese imports on Friday, US President Donald Trump had pledged to announce additional tariffs should China respond with reciprocal tariffs of their own on US imports.

They did, and now Trump appears set to follow through with his threat.

Risk assets, including the Aussie, reacted negatively to to news, losing ground as soon as the news broke.

AUD/USD 5-Minute Chart© Provided by Supplied AUD/USD 5-Minute Chart In recent trade, the AUD/USD has fallen as much as 0.4% to .7428.

Lucky escape for fisherman in a 'thousand-to-one' rescue

  Lucky escape for fisherman in a 'thousand-to-one' rescue A WA fisherman is rescued after his boat capsizes, in what rescuers say is a 'thousand-to-one' chance of being spotted.The Geraldton Volunteer Marine Rescue was escorting a group of four long-distance rowers out of a shipping channel in Geraldton, 415km from Perth, when they spotted a flare.

AUD /USD Monthly Chart. The Australian dollar fell sharply across the board as trade war fears flared up again on Tuesday. Since China is Australia ’s largest trading partner, the Australian dollar is highly sensitive to economic news impacting China.

Trade war fears rocked Wall Street on Thursday after President Trump launched a crackdown on China. "The American consumer again will be the pawn that pays for this." Bank of America (BAC), Citigroup (C) and Morgan Stanley (MS) fell sharply .

Given the late-breaking news, trade headlines look set to dominate Wednesday's trading session, making data releases near-irrelevant for market direction.

Australia will release housing finance data for May at 11.30am AEST. Like most other housing indicators at present, loans to owner-occupiers are expected to fall 2%.

Westpac will also release its Australian consumer sentiment report for July at 10.30am.

Wayne Byres, APRA Chair, will also deliver a highly-anticipated speech on Australia's housing market from 1pm AEST.

Outside of Australia, other headline releases today include US producer price inflation and wholesale inventories.

The Bank of Canada (BoC) will also meet with the bank expected to lift its official interest rate by 25 basis points to 1.5%. The announcement will hit at midnight AEST.

There's also a plethora of central banker scheduled to speak with Draghi from the ECB, Carney from the BoE and Bostic and Williams from the US fed all in action.

Despite the busy calendar, trade tensions still look set to dominate outside the BoC decision.

In particular, the performance of Chinese markets, especially the Chinese yuan, could prove to be influential in Asian trade.

Iranian police arrest 'Sultan of Coins' .
Police say the man hoarded two tonnes of gold coins in order to manipulate the local market. Tehran police chief Gen Hossein Rahimi said the unnamed 58-year-old had used accomplices to collect an estimated 250,000 coins over the past 10 months.He dubbed him the "Sultan of Coins". Iranians have been buying up gold coins since the US abandoned a nuclear deal with Iran in May and said it would reimpose sanctions, triggering a fall in the value of the country's currency.A US dollar was worth about 81,000 rials on the unofficial foreign exchange market on Wednesday, compared with 43,000 rials at the end of 2017.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!