The United States’ (US) Treasury Secretary Steve Mnuchin crosses wires by the press time and speaks on various issues ranging from digital tax agreement with France to Turkey. However, his comments on the lack of progress in trade talks with China seem the key.
Key quotes
“As of now there is no invitation from China for more trade talks in Beijing.”
“Lighthizer and I are prepared to travel to China.”
“Intellectual property protections in china trade deal are ‘quite broad'”
“Some technology transfer issues ‘will overlap with phase 2’ of China trade deal.”
“Has not determined how to treat China in next treasury currency report.”
“Had discussions with Chinese officials on currency that made Treasury more comfortable.”
“Objective is for US and Chinese Presidents to sign trade agreement when they meet.”
“We have not addressed the December 15 tariffs in China trade deal phase 1.”
“Will address December 15 tariffs as we go along with negotiations.”
“Top near term trade priorities are competing phase 1 of China deal, passing USMCA in Congress.”
“Have had lots of discussions on trade with the EU, focus is on increased auto production in the US.”
“US, France are trying to find OECD solution for Digital Tax Dispute.”
“Getting closer to Digital Tax Agreement with France.”
“Consulting with State Dept, Intelligence Community, NSC on further sanctions on Turkey.”
“Could sanction additional Turkish ministries, ministers, industries.”
FX implication
With mildly trade-negative comments, the AUD/USD pair pulls back to 0.6755 by the press time but no major market reaction could be witnessed to the news.
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