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Dollar higher as uncertainty escalates with US-China trade talks

USD - United States Dollar

After 50-year record unemployment numbers and better-than-expected non-farm payroll data, the US Dollar gains were eroded after Trump gave investors a reality check regarding the China-US trade talks. Trump has confirmed he will raise tariffs on $200bn of Chinese goods because the trade deal is escalating “too slowly”. This information was tweeted from Trump’s account where he explained that pre-existing tariffs of 10% would be raised to 25% and a further $325bn of untaxed goods may now be taxed at this 25% rate. Trump may receive some backlash for this, as there is speculation that China may reciprocate on US goods.

Key Movers

Overnight the RBA left its cash rate unchanged at 1.50% even as inflation and growth forecast have remained subdued, market participants had a 50/50 probability of a cut to interest rates. The Aussie dollar gained against its trading peers after the announcement. WTI fell 1.27 % to 61.46 dollars per barrel on the fear of decreased demand due to a prolonged trade war between the world's two largest economies.

Expected Ranges

EUR/USD: 1.1174 -1.1217 ▼

GBP/USD: 1.3039 - 1.3131 ▼

USD/CAD: 1.3404 - 1.3484 ▲

AUD/USD: 0.6977 - 0.7147 ▲

NZD/USD: 0.6589 - 0.6628 ▼