Trump's intelligence chief warns China is the greatest threat to US since WWII – CNN

Anil Panchal FXStreet

Early Friday morning in Asia, CNN quotes US President Donald Trump’s most senior intelligence official John Ratcliffe while stating that China is preparing for "an open-ended period of confrontation with the US," urging bipartisan action to address "the greatest threat to America today" and to "democracy around the world since World War II."

The report also quotes anonymous sources while saying, US President-elect Joe Biden is well aware of the challenge Beijing presents, but believes Trump's approach -- particularly taking action without consulting allies -- has undermined the ultimate goal of competing with China.

Before a few hours, news rolled out that the Trump administration confirmed the blacklisting of four Chinese firms, namely the chipmaker SMIC, oil form CNOOC, China Construction Technology and China International Engineering Consulting Corporation by identifying the linkages with the Chinese military.

On the positive side, the Wall Street Journal reports that the US Justice Department is in talks with Huawei's Meng Wanzhou to allow her to return to China if she agrees to some wrongdoing. A deal could pave the way for the release of two detained Canadians.

FX implications

While the negatives concerning China are mostly known, news for the Huawei Finance Chief offers positive support to the market sentiment. As a result, S&P 500 Futures prints 0.10% intraday gains by press time.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.