EUR/USD

At the Asian session, the pair EUR/USD grew to 1.1619. The focus of investors' attention is still on the trade war between the US and China. On Tuesday, it became known that the US can begin to charge 25% duty on Chinese goods worth USD 16B as early as on August 23 (earlier, the increase in tariffs was scheduled for August 30). At the same time, the list of goods subject to duties was slightly reduced from 284 to 279 items. In particular, cargo containers were withdrawn from the list, as they are used by American companies but produced only in China. Meanwhile, data on China's trade balance in July recorded a negative impact of tariff opposition. The surplus of the trade balance decreased from USD 41.47B to 28.05B. Exports increased by 12.2%, while imports increased by 27.3% (the highest figure since January this year).

GBP/USD

The pair GBP/USD grew to the level of 1.2990 in the morning. As there is a lack of key economic releases, the movement of the price is of technical nature. In general, GBP remains under pressure from the situation with Brexit, which runs the risk of the UK withdrawal from the EU without a deal, as well as from weak data on July retail sales, which speak of the instability of the British retail trade.

AUD/USD

The pair AUD/USD at the Asian session had ambiguous dynamics, but by the now it has grown to 0.7430.

Investors are focused on the trade war between the US and China, as deepening the conflict can affect the Australian economy significantly. Meanwhile, the head of the RBA, Philip Lowe, said that the government expects GDP growth above 3% in 2018 and 2019, a decrease in unemployment to 5.0%, and an increase in inflation to 2.5% by 2020. Inflation will grow as the economy approaches full employment, and then monetary policy can be normalized.

USD/JPY

Quotations of the pair USD/JPY during the Asian session dropped to the level of 111.22. Data on the reduction in the current account in June from JPY 1938.0B to 1175.6B were ignored by the market. Investors are waiting for the development of the US-China trade conflict.

Gold

Gold quotes at the Asian session corrected upwards to 1213.60 after a decline on Tuesday. The popularity of the asset is growing amid new statements by the US administration regarding the trade conflict.

Morning Market Review

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