In the currency supermarket, the U.S. dollar index, which tracks the greenback against a basket of currencies, worked at 95.560 at 9:48 a.m. HK/SIN after declining from levels near 97.00 in the foregoing week.
The index “recorded its fourth consecutive daily decline against a backdrop of redressed risk appetite, lower (U.S. Treasury) yields and news that President [Donald] Trump had expressed damp squib with recent Fed hikes,” Rodrigo Catril, a senior foreign-exchange strategist at the Country-wide Australia Bank, wrote in a morning note.
In an interview with Reuters, Trump phrased he disagreed with the Federal Reserve’s decision to raise interest evaluates, and he said the Fed should do “what’s good for the country.”
Catril added that this week’s craft talks between the U.S. and China will be pivotal to whether the Australian dollar can retrieve to levels above $0.75, or fall below $0.69.
Reports said that delegations from Beijing are set to defray with U.S. officials on Aug. 22 and Aug. 23 to try and find ways to resolve an escalating rate war between the world’s two largest economies.
Catril explained that there were no “important” outcomes expected from this week’s talks but added that in September, the core would turn on whether the U.S. decides to go with additional tariffs on $200 billion value of Chinese imports or if “a truce is agreed and the decision to impose new tariffs is deferred.”
A custom truce between the two countries would be “a positive outcome for risk attitude” and would open the door for the Australian dollar to trade back above $0.75, Catril bruit about.
Among other currency pairs, the Japanese yen traded at 109.95 to the dollar at 9:55 a.m. HK/SIN, vitalizing from an earlier low of 110.1. Meanwhile, the euro traded at $1.1515, garnering from earlier lows of $1.1477.
Oil prices rose overnight as global benchmark Brent was up 0.5 percent to put in at $72.21 a barrel while U.S. crude futures rose 0.8 percent to $66.43 a barrel.
Here’s a look at the solvent data on Tuesday:
- Hong Kong – July inflation numbers at 4.30 p.m. HK/SIN
— Reuters gave to this report.