The US Dollar Index was trading close to a 2-1/2 week peak, getting support from higher Treasury yields on US instruments, as well as an increase in safe haven demand as a result of the worsening trade rift between China and the U.S. The Index, used to gauge the relative strength of the Dollar versus its major rivals, was trading at 97.947 .DXY, falling from the May 3rd high of 98.036 .DXY. The United States fired the latest salvo in the trade war, which resulted in falling prices for Chinese technology stocks, especially Huawei and other chip makers.
As reported at 10:21 am (JST) in Tokyo, the USD/JPY was trading higher at 110.1680 Yen, a gain of 0.0799% and sliding off the earlier peak of 110.211 Yen. Remaining in Asia, the AUD/USD was trading at $0.692, up 0.1751%, with the pair ranging from $0.69067 to $0.69291. The NZD/USD was trading at $0.6541, a gain of 0.0796%; earlier, the pair had hit a peak of $0.65429.
Surprise Election Outcome Aids Aussie Dollar
The Aussie Dollar is still benefiting from Monday's surprise election outcome with a win by the Conservative party. Analysts say that the win has helped to shift sentiment in the Aussie Dollar, given expectations of some stability in the financial markets there. Also in Australia, the Reserve Bank of Australia is set to release the minutes of its latest policy meeting, with the RBA governor holding a press conference later today.