The Australian Dollar pair edged marginally higher for a fourth consecutive day, extending its gains to as high as 0.7246 before trimming the positive momentum at the close. Opening this morning at 0.7222, the Aussie has been the beneficiary of a general risk-on tone throughout the week as the news from the US-China trade war improves.
Overnight, the WSJ reported that China was drafting a replacement for the Made in China 2025 policy and are planning on further opening their borders to foreign companies. The move has been touted as a significant olive branch to the US as the contentious policy has led to alleged intellectual property theft and forced technology transfers. Adding to the positive news from the trade war was President Trumps commitment to not raising tariffs until he finds out whether the two sides could reach a deal. He also mentioned that he’s happy to meet President XI again. Lastly, the Huawei CFO was granted bail in Canada and Trump has confirmed he would intervene if it would help achieve a trade deal with China.
Moving into Friday, there is little on the domestic calendar to excite markets. China is set to release its retail sales, industrial production and fixed asset investment for November however that should pique the interest of investors.