1. Yuan, Aussie Tumble After U.S. Threatens China With More Tariffs
The dollar rose near an 11-month high against the Chinese yuan and the Australian dollar, early on Wednesday morning, after the U.S. said it would slap tariffs on an extra $200 billion of imports from China. The threat of more tariffs escalated tensions between the world’s two biggest economies and threw U.S.-China trade war worries back into the spotlight. The Chinese yuan fell as low as 6.6569 per dollar, down 0.4 percent as of 6:30 GMT. The Australian dollar (AUDUSD) also slipped more than 0.6 percent to $0.7411 as of 6:30 GMT this morning.*
2. Gold and Oil Fall Against Firm Dollar
Gold (XAUUSD) and crude oil (USOIL) prices fell on Wednesday as the dollar firmed after the Trump administration threatened to impose additional tariffs on $200 billion worth of Chinese goods. It should be noted that the 10% tariffs will not take effect immediately but will undergo a two-month review process, according to a government statement released on Tuesday. A firmer dollar works as a headwind for gold, as it makes bullion more expensive for holders of other currencies as the commodity is priced in dollars. Specifically, gold was last seen trading at 1,2525.60 down 0.2 percent as of 6:40 GMT. The oil market was also affected by the firm dollar with WTI crude (USOIL) dropping 0.6 percent at $73.67 and Brent Oil (CL_BRENT) slipping 0.9 percent at $78.19 as of 6:40 GMT.**
3. Bitcoin Tumbles On Selling Frenzy
Bitcoin tumbled on Wednesday as its attempt to rise above $7,000 was met with a massive selling frenzy from investors that sought to profit from its recent climb. Bitcoin was last seen trading down 4.45 percent, at 6,302.8 as of 6:45 GMT this morning. Ethereum, the world’s second largest cryptocurrency by market cap, also fell by 6.7% to $426.51 as of 6:45 GMT. Meanwhile, reports confirmed that two new digital currency exchanges have been accredited by the Bangko Sentral ng Pilipinas (BSP).***
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*Source: Reuters, Jul 11, 2018 5:46 AM GMT
**Source:Investing, Jul 11, 2018 01:57 AM ET
***Source: Investing, Jul 11, 2018 6:57 AM ET
