Yuan rose as PBOC lowered its key liquidity rate for the first time since 2015
- Chinese yuan inched up in Asia after the People's Bank of China (PBOC) lowered its key liquidity rate for the first time since 2015.
- The U.S.- China trade deal team had a constructive discussion about each others concerns
- Concerning data, the Commerce Department reported on Friday that the U.S. retail sales rebounded in October.
On Monday, the Chinese yuan inched up in Asia after the People’s Bank of China (PBOC) lowered its key liquidity rate for the first time since 2015.
The USD/CNY pair moved up 0.1% to 7.0112 by 03:46 GMT.
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The PBOC slashed interest rates on its seven-day repurchase agreements for the first time since October 2015. The bank aimed at boosting business confidence after a set of weak economic data last week.
The U.S. dollar index traded 0.1% lower to 97.810.
The Fed Reserve will publish the minutes of its October meeting on Wednesday. Several policymakers at the Fed will speak before the upcoming Thanksgiving holiday.
The U.S.- China trade deal
Meanwhile, there’s progress with the U.S.- China trade deal. The Chinese state media Xinhua reported that Liu He, China’s Vice Premier spoke with Steven Mnuchin, the U.S. Treasury Secretary and Robert Lighthizer, the U.S. Trade Representative about phase one trade deal this morning in a phone call.
According to the article, the two sides had a constructive discussion about each other’s concerns. The USTR also confirmed the call took place.
Larry Kudlow, the White House Economic Advisor, said that China and the U.S. were moving close to a deal. His comments boosted the markets.
Traders expected the two sides to sign the phase one deal last weekend at the Asian-Pacific countries’ summit in Chile. But the event was canceled because of domestic riots.
The U.S. retails sales data
Concerning data, the Commerce Department reported on Friday that the U.S. retail sales rebounded in October. However, consumers cut back on purchases of big-ticket household items and clothing. The data raised questions about consumer’s current purchasing power underpinning the U.S. economy.
The AUD/USD dropped 0.2% to 0.6808. On Tuesday, the RBA will release its latest minutes on the monetary policy meeting. The ECB meeting minutes are due on Thursday.
The EUR/USD pair moved up 0.1% to 1.1060
The USD/JPY pair also moved up 0.1% to 108.80