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  • Trade war escalation hits Wall Street, triggers risk aversion.  
  • Australian dollar drops sharply across the board, AUD/USD heads for the lowest close since the financial crisis.  

The AUD/USD pair tumbled following Trump’s announcement of more tariffs to China. It fell from 0.6867 to 0.6793  reaching the lowest intraday level since the January “flash crash”.  

US President Trump said the US would place a 10% tariff on $300bn of additional Chinese goods since September 1st. The move represents an escalation of the trade war between the US and China.  

Wall Street tumbled after the announcement and US yields move further to the downside. Crude oil collapsed, down now more than 7% and gold jumped toward $1440, up $40 from the daily low.  

AUD/NZD also gets hit  

Among currencies, the Yen soared after the announcement across the board amid risk aversion. The Australian Dollar so far is among the most affected. The AUD/NZD lost 75 pips in a few minutes, falling to 1.0369, the lowest in four months.