Trump’s recent statements have worsened risk appetite. Traders are seeking safe-haven assets. A five percent tariff on all goods coming from Mexico will go into effect on June 10. Thus, market sentiment continues to deteriorate. Today’s data from China showed that the last imposition of US duties hammered China’s economy. In May, the manufacturing index fell below 50-point benchmark, separating growth from decline. After weak data from China, the global recession has become investors’ biggest fear. The Australian dollar dropped drastically amid China’s economic reports, breaking the 0.69 mark. However, the downward movement quickly ended. Later, the Aussie managed to recoup all the losses against the US currency. The AUD/USD pair closed the Asian session around 0.6915. China’s business activity slowdown and the tariffs on Mexican imports increased the demand for safe-haven assets. The yen, however, is thriving amid such news. It surged up significantly as trade wars are still escalating. The USD/JPY pair fell to 108.87, while yesterday it was trading at 109.60. The pair is under the full control of sellers. For now, it’s better to remain flat while trading. The US dollar kept unchanged against its rivals on Friday, trading above 98 mark. However, a downward trend looks quite likely. Trade relations with China hardly affected the greenback. The Fed, on the other hand, is concerned. Notably, this year began with a change in the US Central Bank rhetoric. It increased the risks of breaking the uptrend on the US dollar index. The chances of the key rate cut are growing. In June, the Fed may surprise the market. Earlier, the Fed officials linked the key interest rate cut to weak inflation. Now there is another reason. The Fed may ease its policy if the trade war and the correction of the stock indexes will slow down the US economic growth.