- The USD remained stable in Asia as traders waited for clarity on the US-China trade developments.
- The Peoples Bank of China, on Monday, slashed its lending rates on a seven day reverse repurchase agreement for the first time since 2015.
- The dollar steadies after 3-days straight losses as investors awaited the release of minutes of the Fed Reserve meeting at the end of October when policymakers cut rates.
On Tuesday, the USD remained stable in Asia as traders waited for clarity on the US-China trade developments.
CNBC reported that China was pessimistic about the trade deal when Trump said he did not agree on canceling tariffs.
Gai Feng said the markets expected the two world powers to sign the deal soon. Gai Feng is China’s Commerce Ministry Spokesman. He said that China and the U.S. had reached an agreement to roll back on tariffs. On Friday, Larry Kudlaw – White House Economic Advisor said the two sides were closer to the deal.
The U.S. Dollar Index rose 0.01% and last traded at 97.675 by 03:44 GMT.
The USD/CNY pair was near flat at 7.0254.
The Peoples Bank of China, on Monday, slashed its lending rates on a seven day reverse repurchase agreement for the first time since 2015.
The GBP/USD pair remained stable at 1.2954, after gaining 0.4% earlier in the session. The pair was responding to news that all Conservative Party candidates had pledged to support Boris Johnson’s Brexit deal at the Dec 12 elections.
The AUD/USD pair lost 0.1% to 0.6797 after minutes from the latest RBA policy meeting showed the central bank considered rates this month.
“The Board agreed that a case could be made to ease monetary policy at this meeting, but that the most appropriate approach would be to maintain the current stance of monetary policy and to make another full assessment once more evidence of the effects of the earlier monetary easing had become available,” the minutes said
Dollar steadies after 3-days consecutive losses awaiting policy minutes
The stability came after 3-days straight losses as investors awaited the release of minutes of the Fed Reserve meeting at the end of October when policymakers cut rates.
According to the weekly positioning data, global macro hedge funds had rumped up their dollar selling for a third week.
Some market watchers say hawkish policy minutes could trigger a dollar rebound.
The dollar hit its lowest since late last week as hopes for a trade deal evaporated following CNBC’s report that China was pessimistic about agreeing to an agreement.
“Trade headlines are dominating sentiment, but in terms of the key event risk, the release of the Fed minutes will be a big one for market participants,” said Morten Lund, a senior F.X. strategist at Nordea.
The dollar index was broadly steady at 97.84 after weakening more than 0.6% in the last three sessions. It had hit a one-month high of 98.45 on No.13.
Elsewhere, the AUD fell 0.16% to $0.6799 and declined 0.26% to 73.82 yen.
The Australian central bank agreed for a possible another cut in the 0.75% cash rate at its November meeting due to the unwelcome weakness in wages growth and inflation. Minutes published on Tuesday showed.
The GBP held firm around $1.2950 being buoyed by polls pointing to Conservative Party victory in upcoming elections.
The yuan fell to a two-week low of 7.0295 per dollar in the onshore market.