The US dollar is strengthening as trade war fears increase again, index is on the rise after a volatile session yesterday. The biggest effect is being seen on the AUD/USD, as the Aussie slips back to 26 month low against the US dollar on fears that trade disputes will hit China’s economy. The AUD/JPY is also on the back foot, slipping back towards 79.00.
The EUR/USD continues to struggle with the 1.1600 handle, down again today on emerging market concerns. The GBP/USD failed to build on Monday’s momentum, with follow on selling this morning to test the 1.3000 level.
The USD/CAD is slightly higher this morning, but the damage was done yesterday as traders buy up the Canadian dollar on hopes of a trade deal.
The yen pairs are on the back foot as the dollar gives way to yen in the safe haven stakes. The USD/JPY is on the back foot this morning as are most other yen pairs.
Today we have US PPI at 13.30.
US crude oil inventories are at 15.30.
FOMC Member Brainard speaks at 17.45.
The AUD/USD continues to struggle, but there are still grounds for pessimism as the Aussie economy catches a Chinese cold.