On Tuesday morning, the USD rose while Asian currencies moved sideways in Asia after Trump announced his plans to revive tariffs on steel and aluminum from Brazil and Argentina.
The announcement came after Monday’s data from the Institute of Supply Management (ISM). According to the data, manufacturing activity had contracted in November. The ISM Manufacturing PMI fell 48.1 in November below expectations.
A reading below 50 suggests contraction.
The USD gained some ground on the morning trade in Asia. The US Dollar Index rose 0.07% to 97.92 by 01:50 GMT.
Traders focus on US-China trade talks with uncertainty
Traders continue to focus on US-China trade talks with uncertainty after Trump signed into law the two bills supporting Hong Kong protesters. The move will not make trade negotiations easier, although China still wants a deal.
“I have no deadline, no. In some ways I think I think it’s better to wait until after the election with China,” Trump told reporters in London where he was due to attend a meeting of NATO leaders.
“But they want to make a deal now, and we’ll see whether or not the deal’s going to be right, it’s got to be right.”
Trump said a deal with China would only happen if he wanted it to, and he thought he was doing very well in the talks.
“I’m doing very well on a deal with China, if I want to make it,” he said. “I don’t think it’s up to if they want to make it, it’s if I want to make it. We’ll see what happens.”
“I’m doing very well, if I want to make a deal, I don’t know that I want to make it, they’re going to find out pretty soon.”
According to the Global Times tweet, phase one deals required the US to roll back tariffs. Global Times is a nationalist English-language tabloid in China.
The next batch of American tariffs on Chinese goods is due to take effect on Dec.15.
The People’s Bank of China (PBOC) set its reference rate for the yuan at 7.0223, slightly weaker than Monday’s 7.0409.
The GBP/USD pair dropped 0.03% to 1.2933 as the UK moves closer to the Dec.12 elections. The election results will give clarity on the future of Brexit.
The EUR/USD dropped 0.05% to 1.1072.
The USD/JPY pair gained 0.07% to 109.04 in morning trading.
The AUD/USD pair was flat at 0.6817.
The NZD/USD marginally moved down 0.02% to 0.6501.