The ongoing battle between the US and China over trade policy has appeared to take one step closer to ending.
A report in the Wall Street Journal has indicated that an agreement may be on the cards as early as March 27th when representatives from the pair of nations could meet at a summit.
The report had a wide range of effects on the foreign exchange markets. The Chinese yuan was one of the best winners, with the offshore version going up by a full quarter of a percentage point in the pair with the US dollar.
Overall, it reached 6.6970 – putting it close to a seven-and-a-half month high point.
The Australian dollar, which is largely considered to be deeply linked to the fortunes of China due to trade policy connections, went up 0.4% to $0.71055 in the AUD/USD pair.
Elsewhere, success wasn’t on the cards. The single European currency, for example, stayed constant in the EUR/USD pair at $1.1378.
In a sign of regional fortunes rising, the New Zealand dollar also rose in the NZD/USD pair – this time by 0.45% to $0.6823.
As a new trading week gets well underway, a look at the economic calendar is a good idea.
Today (Monday) is relatively sparse, with just one release – the AiG Performance of Services Index from Australia covering the month of February – to watch out for at 9.30pm GMT. This was last recorded at 44.3.
Into tomorrow, the first main event will be the interest rate decision from the Reserve Bank of Australia. This is due at 3.30am GMT and is expected to remain firm at 1.5%.
In Spain, there’ll be a Purchasing Managers Index (PMI) Services data set released by Markit Economics at 8.15am GMT. This is expected to show a slight drop from 54.7 to 54.3.
Further PMIs in the same series will be released in other countries across the following hour.
In the afternoon, a crucial PMI – the ISM Non-Manufacturing Index sent out by the Institute for Supply Management – will be released in the US, covering the month of February. This is expected to show a change from 56.7 to 57.3.
A speech from the Bank of England’s Governor Mark Carney is expected at 3.35pm GMT.
There will be more central banker action to report later on in the day too, as the Reserve Bank of Australia’s Governor Philip Lowe speaks at 10.10pm GMT.
Early in the morning on Wednesday, there will be a speech from the Bank of Japan’s board member Yutaka Harada.
Canadian import and export data will be released at an unspecified point during the day. At 1.30pm GMT, the country’s labour productivity statistics for the fourth quarter of 2018 will be released. Quarter on quarter, this is due to show a change from 0.3% to 0.2%.
All attention will continue to focus on Canada in the afternoon as the country’s central bank will release its interest rate decision at 3pm GMT. This is expected to be held firm at 1.75%.
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