USD Strengthens on Trump Tariff Threats Against China

The US dollar surged across major pairs following former President Donald Trump's tariff-related comments about China on October 10, triggering a broad risk-off sentiment in financial markets. The S&P 500 experienced a sharp selloff, with safe-haven flows benefiting the greenback. Technical analysis shows the dollar index testing key resistance levels, while risk-sensitive currencies like AUD and NZD faced selling pressure. The tariff threats have reignited concerns about renewed US-China trade tensions, potentially disrupting global supply chains and economic growth. Traders are monitoring the confluence of technical support zones that could provide short-term stability for equity bulls. However, sustained dollar strength depends on whether these trade concerns escalate into actual policy actions. Key USD pairs are approaching critical technical levels, with EUR/USD testing support near 1.0750 and USD/JPY pushing toward resistance at 150.00.