The US-China trade relations are in jeopardy after Human Rights Watch has pointed out at China’s abusive practices in Xinjiang. As a result, the Asia-Pacific indexes, as well as the major Wall Street indexes, have tumbled. The demand for safe-haven currencies has grown amid risk aversion. Yesterday, Donald Trump openly admitted that the trade deal would be concluded not before the end of the US presidential election. Today the US delivered another news that may trigger the escalation of the trade dispute. Congress is once again considering a bill on human rights in Xinjiang. Yesterday, the US House of Representatives almost unanimously passed a bill on sanctions under the “Global Magnitsky Act” against the Chinese government which allegedly keeps up to a million representatives of Muslim ethnic minorities in prison camps. The bill now needs President Donald Trump’s signature to come into effect. The US dollar index, which tracks the greenback’s dynamics against a basket of six major currencies, fell to the level of 97.70. It may sink to the levels of the first half of the year. Traders are transferring funds into government bonds and the demand for safe-haven assets is growing. The dollar/yen pair gained momentum. The quote dipped to a 1.5-week low at 108.50. The recovery in the yield of US Treasuries limits further fall of the pair. The Australian dollar was the main outsider in the Asian session. Its quote was heading to 0.6800, coming under pressure amid risk aversion, as well as weak Australian GDP data. The weak figure has only increased the likelihood of the key rate cut by the Reserve Bank of Australia. The revised data showed that in the second quarter Australia’s GDP grew not by 0.5% but by 0.6% compared to the first quarter. Nevertheless, in the third quarter, its growth contracted to 0.4% which is slightly below the forecast values. Today’s economic calendar is going to be eventful. Several countries are scheduled to issue their Services PMI. At the same time, investors remain alert to the news about the US-China trade deal. Additionally, ADP’s private sector employment report from the US is due today. Traders are also awaiting the Bank of Canada’s decision on its key rate and the report on oil reserves from the US Department of Energy. That’s all for now! We continue to keep close tabs on market developments! Stay tuned!