Escalating trade tensions between the US and China is currently dominating the sentiment in Market. The latest news is the arrest of the Canadian diplomat Michael Kovrig in China. According to experts, this is in response to the arrest of the Huawei executive Meng Wanzhou in Canada. Donald Trump has announced that he could do the best to ease the situation. The US dollar index is trading at 97.40.
The USD/JPY pair is trading at 113.50. The producer price inflation data released from the US was positive and it helped greenback to strengthen. Today, Japan released its PMI data which indicated an expansion in the economy. The consumer confidence index data released from Australia did not help the Aussie at all. So, it is looking bearish and trading at 0.7200. Investors are looking for the release of the inflation data from the US. It looks likely that the greenback will rally.