Asia Summary and Highlights 7 Aug
Trump promises very large, 100%, tariffs to come on chips and semiconductors
Trump is threatening China with an extra 25% tariff over Russia oil buys
Reports that Trump is going to hit Japan with an extra 15% tariff
Asia Session
Tariff man strikes again on Thursday as Trump suggest tariffs on chips, semiconductors and those who buy Russian oil. However, the big caveat comes from Apple and TSMC already received exemption. It seems to suggest anyone who is planning to invest in America, will be receiving exemptions. Tech equities love that and we see the broader risk sentiment stays upbeat. AUD/USD is trading 0.14% higher at 0.6513, NZD/USD is trading 0.3% higher at 0.5947 while USD/CAD slips 0.05%. Trade adviser Peter Navarro is holding Trump for now to not impose extra tariffs on China for purchasing Russian oil.
It is reported that the understanding of tariffs for Japan has been wrong and suggest all Japanese import could be hit with a 15% extra tariffs. While there has not be confirmation from the U.S. side and the lack of details for the U.S.-Japan trade agreement , it is enough to push the JPY lower as the pair reached a session high of 147.71 before retracing the spike to trade 0.04% lower at 147.29. Else, EUR/USD is up 0.09% and GBP/USD is up 0.06%.
North American session
The USD was generally weaker in North America. There was no significant data but Fed’s Kashkari and later Cook expressed concern over the weakness of recent employment data. USD/JPY fell to near 147 from 147.50, EUR/USD advanced to 1.1660 from near 1.16 with EUR/JPY pushing above 171.50. GBP/USD rose to 1.3360 from 1.3310 but the commodity currencies saw only limited extensions of their European gains.