The US Dollar Index moved higher even as markets fret over the increase in trade tensions between China and the United States. In response to President Trump's threat to increase tariffs on Chinese imports, the Chinese government has said that they would retaliate in kind. Analysts point out that given the imbalance of trade between the two nations, with the US importing at a significantly higher degree than China, the greater negative impact would likely be on the Chinese economy. '
As reported at 10:18 am (JST) in Tokyo, the US Dollar Index was trading at 95.1800 .DXY, up 0.01%. The Index is used by traders to gauge the relative strength of the greenback against its major rivals. The AUD/USD was trading flat at $0.7364; the pair has ranged from $0.73566 to $0.73662. The NZD/USD was trading at $0.6734, down 0.1482%; the pair earlier hit a session trough of $0.67307 and a peak of $0.67430.
Japanese PMI Misses Forecasts
Also in Asia, Markit Surveys reported that Japan's Services Sector PMI for July fell to 51.3, missing analysts' forecasts of a rise to 51.6 from June's 51.4. That resulted in the USD/JPY rising to 111.714 Yen, up 0.07%; the pair ranged from 111.617 Yen to 111.784 Yen.