The Australian Dollar enjoyed some fortuitous news overnight that saw the Aussie amongst the best performing currencies. President Donald Trump has extended the pause on higher tariffs for Chinese imports, in turn supporting Chinese equities, the Chinese Renminbi and China proxies, the Kiwi and Aussie. Opening this morning at 0.7169, the Aussie looks well poised to take further cues from off-shore events.
The continuation of the ceasefire did have some supporting comments from the President that buoyed market bulls. Trump via his favourite medium, Twitter, also mentioned that “substantial progress” had been made on “important structural issues including intellectual property protection, technology transfer, agriculture, services, currency and many other issues”. Trump also raised the idea of a signing summit with President Xi, adding that “we are getting very very close”. According to reports, one of the main final issues is the enforcement mechanism with Chinese media reports suggesting the negotiations only get more difficult from here.
Moving into Tuesday the Aussie dollar again enjoys a quiet day on the economic calendar with direction to be driven out of the United States with Fed Chair Powell testifying before the Senate.