The US Dollar index has been holding above 95.00 level moving 0.4 percent yesterday between 95.00 and 95.42 as investors assessed the latest trade headlines and their potential impact on the market. On Wednesday, China announced new 25% tariffs on $16bn worth of U.S. goods as a counter measure, the announcement came just a day after the U.S Trade Representative office released a finalised list of $16bn worth in Chinese goods that will be hit with the tariffs. The Chinese Ministry said the 25% charge will include coal, grease, Vaseline, asphalt, plastic products and recyclables.
On the back of this Crude oil has come under some pressure witnessing its worst daily decline since mid-July and breaking the $67.00 psychological barrier. A tariff on imported U.S. crude oil means a drop in demand and with a drop in demand means U.S stock piles will build putting pressure on prices.
Against the major currencies, the Aussie and CAD are the best performers vs the Greenback, AUD/USD has shifted back above 74c buying 0.7435 and the CAD is up around 1.3020. The Yen has strengthened and sitting at 110.93 at the time of writing and the Pound still falling against the worlds reserve hitting a fresh one-year low of 1.2853.
On the data front, in Asia today we see Core Machine Orders out of Japan and PPI and CPI out of China. Out of the US, PPI, Jobless Claims and wholesale inventories.