'Risk' FX getting trashed on Trump signing the bill to support HK protestors
Here's the news as it broke: Trump signs bill in support of Hong Kong protestors
As I noted in that post China has already said it'll retaliate. 'Risk' is getting hit. One of the worries now, of course, is no US-China trade deal.
AUD in paritukar is copping it … and with flows out of risk into 'haven' currency yen is a beneficiary.
AUD/JPY has deteriorated further:
In case you are wondering what the bill is all about, in a nutshell:
- the legislation was supported by by the U.S. Senate unanimously, and by all except one lawmaker in the House of Representatives last week
- requires the State Department to certify, at least annually, that Hong Kong retains enough autonomy to justify favorable U.S. trading terms
- the bill threatens sanctions for human rights violations
- Trump also signed a second bill passed by Congress banning the export to the Hong Kong police of crowd-control munitions (likes teargas, pepper spray, rubber bullets and stun guns)