Mizuho says the aussie may be a surprise beneficiary from a global trade war

According to Vishnu Varathan, head of economics and strategy at Mizuho Singapore

He says that the aussie may actually benefit from a brewing global trade war as China's retaliatory measures on US exports divert demand to products from Australia.

"The aussie should benefit from China's tariffs on the US - being a substitute for those products. But negative feedback from commodities running through China's dent from US tariffs may still override that", Varathan argues.

Meanwhile, on currencies that would get hit the hardest, he says it will be South Korea, Taiwan, and Singapore - which are all exporters of high-end goods.