On Wednesday, commodity currencies, including the Australian and New Zealand dollars, have ascended considerably during Asia trade amid a large-scale weakening of the evergreen buck.
The evergreen buck is still under pressure. It’s because tensions in trade relations between China and the United States keep edging up – after the USA announced duties of $ 50 billion on imported goods from China, causing Beijing’s immediate response.
The escalation of tensions in trade between the USA and China could have a very negative impact on the global economy and surge in America.
On Tuesday, the Trump administration dared to raise the rates of a strengthening trade clash with China, by announcing 25% duties for up to 1,300 products of industrial technology, transport as well as medical products in an attempt of bringing about changes in Beijing’s intellectual property practices.
On Wednesday, China’s Ministry of Commerce told that it strongly condemns and strictly opposes the newly-imposed duties of the United States and it’s on the verge of taking adequate counter measures.
The Australian dollar was underpinned by seasonally adjusted data on retail sales in Australia, which, according to the national statistics report, inched up in February 0.6%. It definitely surpassed hopes for growth by 0.3% after a leap of 0.1% in January.
It has also become known that in February 2018 the Australian retail trade turnover tacked on by 2.7% compared to February the previous year.
In addition to this, market participants ignored the downbeat data on the index of business activity in the services sector of China from Caixin / Markit, which hit 52.3 in March, and which is lower than the previous outcome of 54.2 and economists’ forecast of 54.5. However, notwithstanding the decline, the index remains above the value of 50, which divides the expansion from the reduction.