Forex Today: Triple blow downs the dollar, Gold glitters amid US-China tensions
|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 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 lows 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 and surrendered 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 later 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.