# Australian dollar could surge in US-China trade war at the cost of the economy, RBA warns - ABC News

> A Reserve Bank of Australia internal report, prepared in March and released under a freedom of information request, estimated that a global trade war could push the Australian dollar up 6 per cent and shrink the economy by 2.5 per cent. The scenario assumed a 20 per cent US tariff on all imports and retaliation by every country except Australia.

- Date: 2018-09-20 · published 2018-09-20T12:00:00.000Z
- Category: trade · region Australia · magnitude low
- Page: https://feedsoft.ai/events/63298-australian-dollar-could-surge-in-us-china-trade-war-at-the-cost-of-the-economy
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

The analysis flags downside risk to Australian demand and a stronger currency that would make Australian exports less competitive, which bears on grain and meat export pricing.

## Read by commodity

- AUDUSD: bullish ▲

## Sources

- abc.net.au: https://www.abc.net.au/news/2018-09-20/australian-dollar-rba-worst-case-scenarios-trade-war/10285550

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