AI forex predictors dominated trading news this week after China's retaliatory tariffs shook currency markets. Systems like Vantage Point's software used machine learning to flag USD/CAD's plunge toward 1.0833 support levels, warning traders hours before the bounce. The AI-identified pivot point became a key battle zone as algorithms fought human traders over direction.

In Asia-Pacific markets, agentic trading bots scrambled to adjust when AUD/USD crashed 60 pips in one day - triple its usual movement. The crash, triggered by China's trade moves, showed how AI risk models can struggle during geopolitical surprises. Some systems automatically shorted the Aussie dollar, while others froze due to conflicting signals from correlated commodities.

The Swiss Franc (CHF) and Japanese Yen (JPY) saw AI-driven volatility as neural networks interpreted Federal Reserve comments. One system's "reverse check mark" pattern detection caused massive yen buys before the trend reversed. This highlighted ongoing debates about overfitting in financial AI - when models work on past data but fail live markets.

Retail trading platforms rolled out new AI features this week, including real-time tariff impact calculators. These tools let everyday investors see how US-China trade fights might affect specific stocks or currencies. However, experts warned that black-box AI recommendations could mislead users during fast-changing crises.

In regulatory news, the EU proposed rules for high-frequency AI trading after algorithms amplified the mid-week "tariff panic." The draft law would require AI systems to include circuit breakers during extreme volatility. Meanwhile, hedge funds using predictive intermarket AI reported strong gains by betting on oil and CAD correlations that humans often miss.