Last week market participants absorbed the jobs data from the United States, after which a rally of the US dollar paused. Today, the US dollar index is trying to get back to Friday's highs. Its quotes are approaching the level of 95.30. Experts say that the US inflation rate remains stable, which justifies another rate hike by the Federal Reserve. At the same time, the US dollar lacks momentum against the Japanese yen. The USD/JPY ended the Asian trading session near the level of 111.30. Market participants pay close attention to the trade relations between China and the United States. Last week, the US government said that it stands ready to impose new tariffs on Chinese goods worth 200 billion dollars.
In response, China threatened to introduce tariffs of 60 billion dollars on such goods as natural gas and aircrafts. The Australian dollar against the US dollar remained in the same trading range. However, today the quotes rebounded from the local low and reached the level of 0.7410 amid the upbeat inflation data from Australia. With the lack of significant economic reports today, the USD/JPY pair and the US dollar index are likely to maintain the current position. On the other hand, the Australian dollar is expected to retreat from peaks amid escalation of tensions in trade relations between the United States and China.