China does not give up so she included additional tariffs of 25% on U.S goods (with worth of $16 billion). On 23rd August 2018, we can see actions from both sides. USA will collect additional 25% tariffs and China will add new tariffs.
We also notice that trade war between China and USA affected on gold and the use of other metals. Gold gained four dollars on a upward movement (on US session) and it was trading under the 1,210 psychological threshold (on European session). Upswing of gold could also continue today because traders may use it as a hedge instrument. If we see bullish movement it will cause to see it move higher aiming for the 1216.37 resistance level and remain close that price. Favoring of gold short positions, can bring the metal moving lower breaking the 1210.27 support level and make aim for the 1207.33 support barrier. Gold could remain between the 1216.37 resistance line and the 1210.27 support level.
China announced tariffs on US soybeans, planes, cars, beef and chemicals. The move was characterized by a surprise element as it was announced just eleven hours after the additional US tariffs were announced. Meetings followed, between China’s ambassador and US officials as well as diplomatic moves in the World Trade Organization. The climate was quickly reversed however as both sides seem to favor negotiations to resolve the issue instead of additional tariffs. Fears in the markets picked up at the beginning of Wednesday however quickly eased later on, as possible negotiations were announced and the markets rebounded along with the USD. Any further headlines about a positive outcome on the dispute could strengthen the USD.
USD/JPY rose late on Wednesday and during today’s Asian morning as trade war fears eased and the pair tested the 106.95 resistance line. We see the case for the pair to continue to trade in a bullish mood should there be further headlines about a possible resolving of the tariffs issue. Should the bulls take the upper hand we could see the pair breaking the 106.95 resistance line and aim for the 108.30 resistance hurdle. Should the bears take the reins we could see the pair trading south towards the 105.55 support line.