By Giles Coghlan, Chief Currency Analyst at HYCM
The uncertainty over a coming trade deal between the US and China is continuing to weigh on risk sentiment this morning. Latest tensions seem to arise from the US Senate unanimously approving the Hong Kong Human Right Bills. China’s foreign ministry has strongly condemned the Senate calling for the US to stop interfering in Hong Kong and China affairs. The hopes for a an extended ‘phase 2 deal’ is greeted with broad scepticism.
In this environment expect AUD, NZD and CAD weakness and JYP, CHF and USD strength.