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In addition to the previous comments, China’s Vice Foreign Minister followed the footsteps of the United States (US) President who earlier spread optimism surrounding the US-China trade deal.

Key quotes

“We have achieved some progress in trade talks with the US.”

“Hopeful an agreement will be reached.”

“We should be partners with the US for cooperation.”

“As long as we respect each other no problems that cannot be resolved by China and US”

“Pressure on China doesn’t work.”

“China not looking to replace anyone.”

FX implications

In a stark difference from his earlier comments, the latest statements add to the current US-China trade optimism and could support further upsides of the Dollars of Australia, New Zealand and Canada.