Search ForexCrunch

Australia is mulling World Trade Organization (WTO) action on China’s decision to slap export tariffs on the country’s barley exports, Trade Minister Simon Birmingham said on Sunday.

Key quotes

“So now the WTO appeal for barley is the next step.” 

“We are engaging there with the grains industry and other sectors to make sure we have strong industry buy-in.”

“I expect that is the process we will go through. I expect that will be the outcome. We are working through just exactly, how and when.”

Market reaction

The escalating trade tensions between Australia and China are limiting the upside in the AUD/USD pair. The aussie pares gains to trade below 0.7400, having faced rejection near multi-month highs of 0.7415 in early Asia.

The upbeat Chinese Manufacturing and Services PMIs failed to impress the AUD bulls. The spot was last seen trading at 0.7386, modestly flat on the day.