• 1 British pound buys 1.8959, down 0.09% as of 5:31AM UTC
      • Sino-US Trade Deal in Final Stage
      • White House economic adviser Larry Kudlow revealed that negotiations between the world’s two biggest economies are in final stages
      • Reserve Bank of Australia (RBA) has cut interest rates three times this year to a record low of 0.75%

Yesterday, GBP/AUD was very close to updating the year-to-date high, but the pair is retracing down after a US official said that the trade talks between the US and China are in final stages.

Currently, one British pound buys 1.8959, down 0.09% as of 5:31 AM UTC. The price has jumped over 2.58% from last Thursday to yesterday’s daily peak. The rally covered the greatest part of the losses of a preceding bearish channel that formed in mid-October. The pair was bullish until recently despite a series of disappointing economic data from the UK, including retail sales, inflation, and employment.

Sino-US Trade Deal in Final Stage

Yesterday, White House economic adviser Larry Kudlow revealed that negotiations between the world’s two biggest economies are in final stages, with the two sides being close to ink the first phase of a trade agreement.

Kudlow, who leads US President Donald Trump’s National Economic Council, said that the president’s trade advisers met yesterday evening to talks about the ongoing negotiations. He talked with reporters after an event at the Council on Foreign Relations, saying:

“We are coming down to the short strokes. We are in communication with them every single day right now.”

While Kudlow didn’t provide any specific details, the markets still reacted positively on increased hopes, with trade-exposed currencies like the Aussie noting growth.

Negotiators from both countries have held video conferences this week, discussing various issues, including the timeline of Chinese purchases of American agricultural goods and reduction of intellectual property theft that the US president is demanding from China.

RBA’s Debelle Satisfied with Rate Cuts

The Reserve Bank of Australia (RBA) has cut interest rates three times this year to a record low of 0.75%, but economists say they don’t have much influence on an economic revival. However, RBA deputy governor Guy Debelle said that the cuts were effective, and this was reflected mainly in house prices.

He noted that the central bank’s monetary policy might not be as influential as in the past, but that it works for the housing market and exchange rates.
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