# Macroscope | Why the US-China trade war could turn the heat on the Korean won and Australian dollar next | South China Morning Post

> A South China Morning Post commentary argues that an intensifying US-China trade war, combined with Federal Reserve rate tightening, could pressure Asian currencies such as the Korean won and Australian dollar. It notes that China's former central bank governor estimated the trade war's economic impact at under half a percent. The piece is analysis of possible market scenarios rather than a new event.

- Date: 2018-09-18 · published 2018-09-18T12:00:00.000Z
- Category: macro · region Asia · magnitude low
- Page: https://feedsoft.ai/events/63294-macroscope-why-the-us-china-trade-war-could-turn-the-heat-on-the-korean-won-and
- Commodities: [Korean Won (KRW per USD)](https://feedsoft.ai/c/USDKRW.md)

## Why it matters

Weaker Asian currencies raise the local-currency cost of imported feed grains and meal, which can dampen buying from importers in the region. The outlook depends on whether the trade dispute escalates or is resolved.

## Read by commodity

- USDKRW: bullish ▲

## Sources

- scmp.com: https://www.scmp.com/comment/insight-opinion/united-states/article/2164576/why-us-china-trade-war-could-turn-heat-korean

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.