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The International economic downturn encouraged Investors to buy the safe haven currency leading to Japanese Yen held onto recent gains., while broader Forex markets were largely quiet as investors watched from the Sidelines. The two years U.S government bond yields raise further above 10 year yield curve that many see as a harbinger of a recession. Investors worry the trade conflict between the United States and China could pour the world into an economy slowdown.

The 105.765 yen per dollar, the Yen stood, unchanged on the day but close to the 7 month high of 104.46 yen hit on Monday. The Ongoing conflict of trade tension between the China and U.S combined with impulsiveness President Trump brings to the table leaves market participants on edge over the possibility of direct intervention, MUFG analyst Stated. This possibility is likely serving to dampen demand for the U.S dollar at these higher levels. The Dollar index, which procedures the greenback against the basket of currencies, raise marginally to 98.042. The weaker risk appetite weigh on the Australian and New Zealand dollars, which tend to perform well when investors buy into riskier assets.

The Aussie had been on the back foot since Reserve Bank of Australia(RBA) Deputy governor Guy Debelle stated on Tuesday that a weakening the Debelle Stated on Tuesday that a weakening of the Currency was sustaining the economy and that the further falls would be beneficial. In August $0.06677 is the decade low the Aussie had fallen. It stand at $0.06738 down 0.2% on the day on Wednesday. On Monday the Chinese Yuan stood at 7.1682 not far from the record low of 7.187

The Euro/dollar was little moved, trading at $1.1091 with little in the way of new economic data scheduled for Wednesday. The Analyst ING stated positive news in Italy, Where the 5star Movement and the Opposition Democratic Party Appear on the border of agreeing a governing coalition, would not help the Euro Significantly. The Escalation in trade wars simply looks to extend the slowdown in manufacturing. The Depressing European enlargement still additional. The EUR looks soft and breakdown to new lows at any time. The USD/EUR prop up at $1.1025/50 looks vulnerable.