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  • Positive trade war rhetoric can support AUD and weigh on the Yen.  
  • China is willing to purchase more us products needed by Chinese markets.

China Foreign Minister Wang has crossed the wries and said that China is willing to purchase more us products needed by Chinese markets.

Key comments

  • Hopes both sides can take more enthusiastic measures.
  • Wants to reduce ‘pessimistic language, actions in trade dispute.
  • U.S has shown goodwill by waiving tariffs on Chinese products.

FX implications

The positive sin headlines are supporting risk appetite, and these comments follow yesterdays from Trump who said after signing a limited trade deal with Japanese Prime Minister Shinzo Abe there was a good chance of reaching an agreement with China.   He said China was trying to be nice to him and added to reporters: “I was nice to them.” “We’re having some very good conversations,” Trump told a later news conference. All of this type of rhetoric can support AUD and weigh on the Yen.