This morning, markets are reeling from Trump’s mooted threat to levy more than $200bn of Chinese goods. Markets have been shaken by this move, sending the Japanese yen soaring as traders seek out safe harbours. The USD/JPY is selling off for the second straight day. The AUD/JPY continues to falter, heading to the 81.00 level which has acted as support for some time. This makes six days of losses for the AUD/JPY. The GBP/JPY and EUR/JPY are also feeling the strain and selling off.
Dollar pairs are mixed, with the EUR/USD and GBP/USD unchanged. The EUR/GBP is slightly lower after two days of gains. The AUD/USD is continuing to sell off though.
The USD/CAD is at multi month highs above 1.3200, despite oil prices recovering yesterday. The USD/CHF is selling off for the second straight day however.
Gold continues to make small gains after Friday’s mega losses.
ECB president Draghi speaks at 09.00.
US building permits are at 13.30, with housing starts at the same time.
The AUD/JPY has been steadily dripping lower as US tariffs potentially hurt the Chinese economy and the Australian economy by proxy.