The Australian dollar tumbles to a one-year low

The Australian dollar is getting battered again in Asian trade, dragged to a one-year low.

The latest catalyst is another escalation in the US-China trade war.

Reports indicate US President Trump is looking to implement new tariffs on another $US200 billion worth of Chinese goods.

Here’s the price action in the AUD on a five-minute chart:

Source: Investing.com

The Aussie briefly fell below US74 cents when news of the latest US tariffs broke.

It follows another rough session for the currency overnight, as the AUD came under renewed selling pressure from the lingering US-China trade tensions.

Benchmark US 10-year bond yields fell back under 2.9% following the news this morning, and Australian government bond yields have followed suit with declines seen across the curve.

Earlier this morning, Trump announced that he had directed the US Trade Representative’s office to draw up a list of another $200 billion worth of Chinese goods that would be eligible for a 10% tariff, unless China reverses course on its own trade positions.

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