U.S. China trade tensions send Aussie sliding 1%, boost safe havens

Group 1 - The Australian dollar fell by 1% to 0.6465, marking its lowest level in nearly two months, while the New Zealand dollar decreased by 0.6% to $0.5693, reflecting a negative sentiment in risk assets due to U.S.-China trade tensions [4] - The U.S. and China are set to impose additional port fees on ocean shipping firms, impacting a wide range of goods, which indicates escalating trade tensions [3] - The chief economist at Lombard Odier highlighted that the ongoing trade war between the U.S. and China is a significant global concern, suggesting that uncertainty and tariffs will persist in the long term [5] Group 2 - Safe-haven currencies like the Swiss franc and Japanese yen strengthened, with the dollar down 0.3% against the yen and 0.1% against the franc, indicating a flight to safety amid geopolitical tensions [6] - Political uncertainty in Japan, particularly regarding the potential candidacy of Sanae Takaichi for prime minister, has limited the yen's gains, as her party's coalition partner withdrew support [6] - The euro experienced mixed trading, with Asian traders pushing it higher, while European traders saw it decline by 0.15% to $1.1552, reflecting uncertainty in the broader currency market [7]