Trade wars are again taking a centre stage, after the US President Donald Trump yesterday, indicated more tariffs on China, raising worries about an escalating trade war between the world’s two largest economies.
President Trump last night indicated to impose a 10 percent tariff on $200 billion worth of Chinese goods, escalating a tit-for-tat trade war with Beijing.
The Euro remained under pressure due to a dispute in Germany’s governing coalition and expectations the European Central Bank will hold interest rates steady till 2019.
Closer to home, the Reserve Bank of Australia’s monetary policy meeting minutes lacked inspiration for our traders. Their central bank sounded more upbeat about a pick-up in economic activity, but high household debt and slow wage growth mean interest rates are set to stay at all-time lows for a little longer.