By Wayne Cole
SYDNEY (Reuters) – The safe-haven Japanese yen briefly blipped higher on Monday as investors reacted to news China had canceled trade talks with the United States just as the latest round of tariffs are set to take effect.
The trade-exposed Australian dollar went the other way, taking an early hit after China also summoned the U.S. ambassador in Beijing and postponed military talks in protest against a U.S. decision to sanction a Chinese military agency.
President Donald Trump’s second round of 10 percent tariffs covering $200 billion of Chinese exports come into effect later on Monday.
The early currency moves came in very thin conditions with Japan and China on holiday and were mostly reversed as the morning wore on. The dollar was soon back at 112.60 yen <jpy=>, having been as low as 112.28 at one stage.</jpy=>