The US-China trade war has another shot to follow as the Financial Times report that as a measure of a crackdown on Chinese companies seen as security threats, the Trump administration ordered the US Government agencies from Pentagon to NASA to stop buying Huawei equipments.
The news report further mentions that a rule issued by the administration bans Huawei, ZTE, a telecoms company; Hikvision and Dahua, manufacturers of surveillance cameras; and Hytera, which produces two-way radios, from supplying the federal government.
FX implication
Given the renewed trade tension between the US and China, such news generally has a negative impact on commodities and linked currencies like the Australia Dollar (AUD), the Canadian Dollar (CAD) and the New Zeland Dollar (NZD). However, it’s only early morning in Asia and markets still await China’s trade balance data that might have tamed the news’ impact.
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