"The trade war mainly hurts business sentiment and may have an impact on iron ore prices, but importers can hedge against the devaluation of yuan", Zhao Yu, an analyst at Huatai Futures, said before data released.
Signs of further escalation of the trade war between the United States and China and weak economic data from the United Kingdom weighed on global markets on Friday, capping a volatile week that has pushed gold to its highest level in six years.
The moves have jolted financial markets and fuelled concerns about a global recession.
Trump has repeatedly expressed dissatisfaction with the dollar's rise, backed by a recovery in the US economy.
They will also hit hardest on lower-income households, who spend a much larger percentage of their income on these staples, he said.
While China's exports to the USA continued to shrink in July in the face of stiffer tariffs, shipments picked up to Europe, South Korea, Taiwan and, most noticeably, Southeast Asia (ASEAN). A major part of the administration's strategy has been to levy tariffs on billions of dollars worth of Chinese products imported into the United States.
But hopes for a deal are dimming and domestic pressure is growing for Trump to cut a deal with Beijing. That's in line with China's economic fundamentals, and the IMF is therefore unlikely to impose sanctions on Beijing, according to Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics in Washington. Following confirmation from China that it would again stop buying U.S. agricultural products, Trump tweeted that China would not be able to hurt farmers and hinted at more financial support.
"It has been a very volatile week", said Elwin de Groot, Rabobank's head of macro strategy.
"Actions on currency have ushered in a new stage in the U.S".
China's central bank said on Tuesday that Washington's currency move would "severely damage worldwide financial order and cause chaos in financial markets", while preventing a global economic recovery. Beijing retaliated with its own penalties and ordered importers to find non-US suppliers.
Japan's core consumer prices, excluding volatile fresh food prices, edged up 0.6 percent from a year earlier in June, but the pace of growth was the slowest in almost two years on falling oil prices, the latest government data showed.
The yuan weakened to more than 7 per U.S. dollar on 5 August for the first time since May 2008.
But China still has some levers left to pull.
China's July exports to the United States fell 6.5 per cent year-on-year, while imports from America slumped 19.1 per cent.
The statement also showed that the rare earths group discussed how to develop and optimize the industry at the meeting.
Tensions could spike further after the release of an interim USA rule for a ban on federal purchases of telecommunications equipment from five Chinese companies, including Huawei Technologies Co Ltd [HWT.UL], the world's largest telecommunications network gear maker.
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