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Of US And Chinese Trade Being A Weakening Factor In The USD

Dollar Currency Trading Weakens in Asian Sessions

In the Asian session after the release of US employment data,
Inside the China-US trade progress remains the focus after the last round of negotiations that ended last Friday.

The US dollar index - which tracks the greenback against a number of other currencies fell 0.1% to 96,860 at 11:59 WIB.

On Friday, government data showed non-agricultural wages rose by 182,000, more than 175,000 expected, but average hourly earnings grew at a slower than anticipated pace, suggesting that the economy was not firing on all cylinders and supporting the Federal Reserve's decision to extend the break in the interest rate increase.

"The data supports the thesis that the Fed is holding for a long time. Until wages rise higher, there is little threat of inflation exceeding the target," BMO said. "At the same time, with the unemployment rate tending to decline lower as the economy rises in the spring, there is no compelling reason to loosen policy."

Meanwhile, trade talks were in focus today as officials from Beijing and Washington completed the final round of their trade talks last Friday.

Official Chinese broadcasters, CCTV reported that there was "new progress" in trade negotiations. Both parties have discussed various issues including technology transfer, protection of intellectual property rights, and bilateral trade balance.

Donald Trump's main economic adviser, Larry Kudlow, told CBS on Sunday that the two sides were "getting closer and closer" to the trade agreement, although the White House said in a statement that "significant work still exists, and the heads of negotiators, representatives the minister, and members of the delegation will continue to relate to resolving unresolved issues. "

Elsewhere, GBP / USD rose 0.2% to 1.3066 after the UK had asked the European Union for another extension until June 39.

EU leaders said Prime Minister Theresa May did not give credible reasons why Britain should be given an extension of time for Brexit.

"If we cannot understand the reason why Britain is asking for an extension, we cannot give a positive answer," said French Finance Minister Bruno Le Maire. German Justice Minister Katarina Barley tweeted: "This time game must end."

The US was originally scheduled to leave the European Union on March 29, but the deadline was pushed back to April 12 so that the British parliament had more time to approve the withdrawal agreement, which could not be done.

The USD / JPY pair fell 0.3% to 111.39.

The AUD / USD pair slipped 0.1% to 0.7093, while the USD / CNY pair was little changed at 6.7187.

Tagged With: Market AnalysisNews US Vs China

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