By Giles Coghlan, Chief Currency Analyst at HYCM
US Commerce Secretary Ross said that they are ‘very far along’ the Phase 1 of the US-China trade deal. USTR Lighthizer and WH trade advisor Navarro has also highlighted constructive trade talks with China. China’s MOFOCM said US-China talks have achieved consensus in principle and were constructive, while the sides discussed the next step ins trade consultations.
So, what’s the move to look for? At this stage the best play would be if the trade relations broke down. This would result in immediate AUDJPY weakness with sellers taking the AUDJPY down quickly.