GBP/AUD: Aussie Lifted by Renewed US-China Trade Optimism

GBP/AUD is in red in early trading on Wednesday. The Aussie is driven by renewed hopes for a US-China trade deal.

The pair is currently trading at 1.8938, down 0.05% as of 6:32. The price has been in free fall since late Monday. The next strong support line is somewhere at 1.8894.

Yesterday, US President Donald Trump said that Washington was in the “final throes” in its effort to reach a “phase one” trade agreement with Beijing.

Last week, the US Congress passed a bill that favor Hong Kong protesters. Beijing accused the US of interfering in internal affairs.

Speaking at an event on Tuesday, Trump was asked whether he had a message for people in Hong Kong. The president responded:

“We’re with them. I have a very good relationship, as you know, with President Xi. We’re in the final throes of a very important deal, I guess you could say one of the most important deals in trade ever. It’s going very well but at the same time we want to see it go well in Hong Kong.”

“And I think it will. I think that President Xi can make that happen. I know him and I know he’d like to make it happen,” Trump added.

However, he didn’t make any specific reference to the legislation passed by the Senate and the House of Representative. Trump has the last word to that bill, and he might veto it.

Nevertheless, the markets focused on the positive news about the potential trade deal. The national currencies of trade-reliant economies, like Australia, are pushed up by investors’ optimism.

Besides Trump, the White House adviser Kellyanne Conway also confirmed that the US and China were very close to reaching an agreement after top negotiators from both sides had a phone call.

Yesterday, China’s Commerce Ministry revealed that the participants of the call were US Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu.

Currencylive.com is a news site only and not a currency trading platform.

Currencylive.com is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.