Welcome to the next steps in President Trump's trade war.

This from the weekend - the European Union has set out how it will target US exports when tariffs come into effect.

  • EU published two lists with American products to be effected
  • A senior European official said the EU's response list was for "stakeholder consultations" and added that the total value of American exports targeted could reach "€6.4 billion all added together."
  • The Commission needed to act now to make sure it notified the lists to the WTO within a 90-day deadline
  • Decision whether to use the lists would be taken only after three months.

More detail here: Brussels publishes US tariffs retaliation lists totalling €6.4 billion

Little wonder the AUD is heavy, the trade war will not be supportive to currencies such as the AUD. There are a stack of reason the Australian dollar should have fallen (interest rate differential should have done it but hadn't so far), the trade moves the final straw on the camels back.

Camels had the inside tip on straws piling up, short AUD, smiling