It is so far unknown, whether Canada is on the list, but traders accelerates looney sell-off on the announcement yesterday evening. As Canada is the largest supplier of both steel and aluminum to the U.S., the risk for the country’s industry is high. Trump promised to impose tariffs next week, so in the short-term, the nervy traders will likely continue to short CAD which reached fresh lows for 2018 around 1.2895 on Thursday and is now trading around 1.2840.
The aussie also pressed the mid-December lows yesterday and touched levels barely above the 0.77 mark. Risks for AUDUSD are also , considering that the Australian annual steel exports worth around $130 million. Besides, the growing fears of a real trade war between the US and China will inevitably put commodity currencies, including AUD, under a more intense pressure. With this in mind, the next downside goal for the aussie is the 0.77 level, while USDCAD could test December highs above 1.29 on fresh signals from Washington.