ForexLive Asia FX news: Trade war fears reignite, not for too long

Forex and Bitcoin news for Asia trading Friday 6 April  2018

The session kicked off some volatility after a subdued early twilight zone with the US President saying he wants the US Treasury to consider a further $100bn in tariffs on Chinese imports to add to the $50bn already proposed.

The news shook USD/JPY and AUD/USD.

USD/JPY fell from around 107.40 to lows circa 107 while AUD/USD dropped from levels above 0.7680 to circa 0.7655. Europe/UK/US traders might not impressed with those response sizes but this is Asia, we’ll take what we get, thanks!

Gold benefitted, up from 1326-odd to above 1332.

The news hit pre-Tokyo trade at the thinnest liquidity time of the 24 hour cycle. Equity futures dropped, USD/CHF fell away a little also, while EUR/USD added on 20 or so points. Cable was a laggard but eventually edged its way to be +20 or so points up on the session (at its highs).

We’ve spent the hours following retracing most of the moves, with AUD/USD on to a fresh session high and back to where it started now around 0.7680-odd!

Apart from this breaking announcement we got some Japanese data (as as often the case with data from Japan there was not much impact) indicating real wages continue to fall, and household consumption slumped again (see bullets above).

We await the jobs report from the US.

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