Daily Analysis: 13 May 2019
(13 May):NZD remains under pressure on the first trading day of the week with US-China trade war showing little signs of de-escalation. On Saturday, Trump warned China not to impose retaliatory tariffs or it would face worst terms, while adding further that he would live to collect bigger tariffs. Trump’s comments came a day after the US hiked tariffs on $200b worth of chinese goods from 10% to 25%.
(13 May): The uncertainties in the trade talks have led capital to flee away from AUD and into Japanese Yen. The reflects that concern that China may not compromise this time and the trade war can escalate. China’s People’s Daily said in a front-page commentary that the U.S. should take full responsibility for the setbacks because it went back on its word and imposed more levies on China products. The market is waiting for China’s countermeasures against the tariffs. JPY could benefit from the risk aversion. ..
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