Forex Today: Triple blow downs the dollar, Gold glitters amid US-China tensions
- 18th August 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY
Here is what you need to know on Tuesday, August 18:
Broad-based US dollar weakness remained the main theme in Asia this Tuesday. The downward spiral could likely to extend further, in the face of a triple whammy of falling US Treasury yields, doubts about the economic recovery and fiscal deadlock in Washington.
The safe-haven greenback failed to benefit from the mixed action on the Asian equities amid renewed US and Australian tensions with China. US Commerce Department announced on Monday that it will add another 38 Huawei affiliates in 21 countries to the US economic blacklist.
Meanwhile, China’s Commerce Ministry said it began an anti-dumping investigation into imports of wine from Australia. In response, Australian Trade Minister Simon Birmingham said Canberra has been told a second investigation into subsidies could be next.
Within the G10 fx space, EUR/USD challenged the 1.1900 hurdle while USD/JPY dropped to fresh weekly highs near 105.55.
AUD/USD consolidated near-weekly tops of 0.7229, with the upside attempts capped by Australian-China tensions and dovish RBA minutes. Meanwhile, extended border controls in other Australian states also kept the bulls unnerved. NZD/USD dropped below 0.6550 amid a continued rise in the virus cases.
USD/CAD extended the break below 1.3200 despite the weakness in WTI. The US oil retreated from two-week highs to surrender the $43 mark.
GBP/USD held onto gains above 1.3100 after a spokesman from the UK PM Johnson’s office insisted that the govt will continue to work at ways to “plug the gaps” in the potential deal to be reached in September. The seventh round of Brexit negotiations starts on Tuesday.
Gold extended the advance and traded just under the $2000 level, having closed above the critical 100-hourly SMA on Monday.
Cryptocurrencies consolidated the upsurge, with Bitcoin trading near $12,300.