The US Dollar struggled for traction in European trade today, especially against the safe haven currencies after the US President once again threatened trade tariffs on imports from China. Donald Trump said he wold raise the current tariffs to 25% from 10% on $200 billion imported goods from China, and put another 25% tariff on an additional $325 billion in goods. President Trump's strong-arm tactics may backfire as the Chinese government has said that they would not renegotiate if not in good faith.
As reported at 11:13 am (GMT) in London, the USD/JPY was trading lower at 110.7420 Yen, down 0.3312% and off the session trough of 111.283 Yen. The USD/CHF was trading at 1.0182 Swiss Francs, a gain of 0.1761%; the pair has ranged from a low of 1.01518 Swiss Francs to a high of 1.01944 Swiss Francs.
Trade Worries Hit Aussie and Kiwi Dollars
Risk appetite for currencies tied to the Chinese Yuan were also coming under pressure as a result of the breakdown in the trade talks. The AUD/USD was trading at $0.6988, down 0.4686% while the NZD/USD was trading lower at $0.6617, down 0.4079%. Both Australia and New Zealand take their cues from activity on the Chinese mainland, given the strong trade relationship between them. Anything that could upset the Chinese economy will trickle down into the Antipodean currencies.