- AUD/JPY jumps 20 pips on US-China trade optimism.
- The two sides remain committed to ensure the success of phase one trade deal.
The bid tone around the Aussie dollar, a China-sensitive high beta currency, strengthened, pushing AUD/JPY above 76.00 after the US officials informed markets about the progress on phase one China trade deal.
Trade tensions ease
The US trade representative Robert Lighthizer and treasury secretary Robert Mnuchin participated in a regular scheduled call on Monday evening with China’s Premier Liu Hu to discuss implementation of the phase one trade agreement reached earlier this year.
“Both sides see progress and are committed to taking the steps necessary to ensure the success of the agreement,” the official statement said.
AUD/JPY found buyers at 75.86 following the US-China trade news and clocked a session high of 76.06 soon before press time.
Looking forward, the pair is likely to maintain the upward momentum, as easing of Sino-US tensions is likely to bolster the risk-on sentiment. The US stocks rallied to record highs on Monday as positive news on the coronavirus vaccine front lifted the virus-hit stocks. The Trump administration is r[eportedly planning to push for an emergency authorization for AstraZeneca’s potential coronavirus drug ahead of the US election in November.