Amid the uncertainty concerning the US-China business ties, a trade-negative action was recently taken by the US Commerce Depart. Reuters came out with the news during the early Wednesday morning suggesting hardships for tire manufacturers of the key Asian economies.
The US Commerce Department said on Tuesday it had opened investigations of imports of vehicle tires from South Korea, Taiwan, Thailand and Vietnam to determine whether they are being sold at less than fair value.
The department said it was also investigating whether tire producers in Vietnam are receiving unfair subsidies.
Given the recent surge in anti-trade news, be it concerning Sino-American trade deal or the UK-Japan talks, not to forget Brexit, update like this weigh on the market’s risk-tone sentiment. As a result, AUD/USD retraces the previous day’s gains near 0.6930. However, the early hours of Wednesday’s Asian session restrict traders’ reaction to the news.
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