Trade War

The Australian Dollar has taken off on news of a potential endgame being in sight for the ongoing US-China trade spat.

The Australian Dollar fell broadly in jittery markets Tuesday and could on course for steep declines over coming months, according to analysts at BNY Mellon, who are warning that President Donald Trump's anticipated tariffs on more than $200 billion of Chinese exports to the US will be a watershed moment for the Antipodean currency.

The Dollar edged rose broadly Friday as traders responded to a better-than-expected nonfarm payrolls report for August, and a surprisingly strong set of wage numbers, while markets wait with baited breath to hear of whether President Donald Trump will go ahead with a second round of tariffs on a much larger portion of China's exports to the US. 

Pound Sterling rose to a four month high against the Australian Dollar Friday as markets responded to President Donald Trump's suggestion that Japan, the world's third largest economy, is his next target in the so-called "trade war".

The Dollar is showing a growing immunity to positive data, markets will meanwhile be watching the currency's response to global risk appetite as Donald Trump escalates the US-China tariff war.

The Dollar stabilised close to an August low on Friday as traders await further clarity on reports President Donald Trump is eager to push ahead with higher tariffs on Chinese exports as soon as next week, and that it is gearing up for another showdown with the EU, which has put the so called "trade war" back on top of the agenda for markets.

The US Dollar rose broadly Thursday as markets responded to a decision by President Donald Trump to up the ante in the so called trade war with an increase in tariffs the White House intends to levy on close to half China's exports to the US, opening the door to a possible retaliation and fresh unease for financial markets.