The USD rose against most other major currencies yesterday amongst positive reports on the US-China trade talks, except GBP as PM Theresa May survives the no-confidence vote resulting in a rally in the GBP.
Overnight the Wall Street Journal reported that China might revamp it’s Made in China 2025 Industrial policy and planning to allow greater access to its markets for foreign companies. This has been one of the sticking points in the US-China trade relations, as the US has accused China of intellectual property theft to achieve its goal of becoming a leader in advanced manufacturing by 2025. A change in direction from China would increase the chances of the two sides coming to a trade agreement. Furthermore, President Trump stated yesterday he would not raise tariffs on Chinese imports until they can decide whether they can reach a deal.
Just after midnight on Saturday, the Census Bureau will release it’s data on retail sales which will outline the change in the total value of sales at the retail level. This is a monthly release that is the primary gauge of consumer spending, which accounts for the majority of the overall economic activity.
The USD opened at 1.38621 against the AUD this morning.