Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Yuan Edges Up on Trump’s Positive Comments on Trade, U.S. Dollar Flat

Published 02/12/2019, 12:29 AM
Updated 02/12/2019, 12:29 AM
© Reuters.

© Reuters.

Investing.com - The yuan traded slightly higher on Tuesday in Asia as U.S. President Donald Trump’s positive comments on trade supported the Chinese currency.

On Monday, Trump said in Texas that his administration is seeking “great deals on trade” and does not want China to have a hard time.

Comments by White House adviser Kellyanne Conway, in which she said Trump wants to meet with Chinese President Xi “very soon” also lifted investor sentiment.

A new round of trade negotiations kicked off in Beijing this week as the world’s two largest economies try to reach a deal before a March 1 deadline for further tariff hikes.

Preparatory talks began on Monday ahead of Thursday and Friday's higher principal-level discussions led on the U.S. side by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, who will meet Chinese Vice-Premier Liu He.

The People's Bank of China (PBOC) set the yuan reference rate at 6.7765 vs Monday's fix of 6.7495.

The USD/CNY pair dropped 0.1% to 6.7862 by 12:18 AM ET (05:18 GMT).

The Australian dollar, a proxy for Chinese economy, also rose 0.2% against the U.S. dollar.

The Aussie dollar’s gain came despite data earlier in the day that showed the country’s home loans dropped 6.1%, a big miss compared to the expected 2% fall.

The U.S. dollar index that tracks the greenback against a basket of other currencies was little changed at 96.877. The dollar index hit two-month highs on the previous day, with weakness in the pound and uncertainty surrounding the Sino-U.S trade tensions cited as supporting safe-haven assets.

The GBP/USD pair fell close to 1% on Monday following data showing the U.K. economy grew just 0.2% in fourth quarter last year, well below the 0.6% posted for the third quarter and missing expectations for a 0.3% increase.

The pair last traded at 1.2863 on Tuesday, up 0.1%.

Elsewhere, the USD/JPY pair gained 0.2% to 11.53. The weaker yen was cited as a catalyst for the buying in Japanese stocks today. The Nikkei 225 last traded at 20,849.50, up 2.5%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.