US-Sino Trade Rift Back in Focus

The safe haven Japanese Yen was broadly higher after the latest rhetoric from the US President. Donald Trump said on Thursday that he was prepared to impose additional tariffs on Chinese goods to the tune of some $300 billion as of September 1st. The President said that China failed to heed specific terms of the agreement related to agricultural purchases. The President’s words effectively ended the truce between China and the United States, which sent safe haven currencies into high demand. Risk-related currencies like the New Zealand and Australian Dollars were also negatively impacted as a result.

As reported at 10:05 am (JST) in Tokyo, the USD/JPY was trading lower at 107.1260 Yen, down 0.1826%; the pair earlier hit a low of 107.049 Yen, while the high was at 107.569 Yen. The EUR/JPY was also lower at 118.789 Yen, down 0.111%, while the GBP/JPY was trading at 129.926 Yen, a loss of 0.0662%.

Aussie and Kiwi Feel Pressure

Trump’s escalation of the trade rift between the two nations sent financial markets into a tailspin. Analysts say that economies related to China’s will soon feel the pressure, as will the respective currencies. China’s key trading partners, Australia and New Zealand, will likely see the Aussie and Kiwi slide. Currently, the AUD/JPY is lower at 72.767 Yen, while the NZD/JPY is trading at 70.07 Yen, a loss of 0.4476%.

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