“Delegation will be sent to the US for talks in late August” and “The delegation will be led by Vice commerce minister and meet US team led by Secretary of the Treasury” – its stated in a statement of China’s ministry of commerce. Also, we could see the USD weakening somewhat temporarily.
In other news we could get the UKs Retail Sales growth rates (European morning) and the number of housing starts and the Philly Fed manufacturing index (American session).
AUD/USD broke the downward trend line and tested the 0.7265 (Asian session). We see the case for the pair to start slowly rising as the USD could weaken. We could see the pair breaking the 0.7265 resistance line and aim for the 0.7325 resistance area. On the other side, we could see the pair aiming if not breaking the 0.7200 support line.
U.S. President Donald Trump said in a tweet on Sunday that the US would negotiate the trade barriers between them and China and that the two countries would come to terms on intellectual property. Trump also specified that China will take down its trade barriers because it is the right thing to do and that there is a Great future for both countries. No explanation was given as to the sudden change of mind towards Chinese imports or the optimism backing the statement. From the European side, European officials have also stated that they are facing difficulties following the actions that U.S. President Donald Trump has taken on implying tariffs and that it could damage global trade. This indicates that the US president may have to revise the trade tariffs he implied as the impact from Chinas retaliation tariffs may have come as surprise to the US. Should there be further positive headlines about the issue we could see the USD strengthening.
USD/JPY moved lower on Friday mostly due to the Non-Farm payrolls release. During today’s Asian morning the pair continues to trade in a sideways manner between the 107.50 Resistance level and the 106.95 Support level. We see the case for the pair to trade in a bullish mood should there be further headlines about a possible resolving of the tariffs issue. Should the bulls take the upper hand we could see the pair breaking the 107.50 resistance line and aim for the 108.30 resistance hurdle. Should the bears take the reins we could see the pair trading south towards the 106.95 support line and even breaching it aiming for the 105.55 Support hurdle.