Risk appetite improved at the opening yesterday, with the US dollar coming under selling interest, as US President Donald Trump and his Chinese counterpart Xi Jinping agreed over the weekend to put tariffs on hold and try to solve their differences within 90 days. The Aussie, although it pulled back later in the day, it was one of the best performers at the opening. The currency rebounded again during the Asian morning Tuesday after the RBA appeared somewhat more upbeat.
US and China Agree to Put Tariffs on Hold
The dollar traded lower against most of the other G10 currencies on Monday. It gained only against the British pound, which came back under selling interest on concerns over the UK Parliament’s vote on Brexit next week. The main winners against the dollar were SEK, NZD and JPY.
Although not clear by the FX performance throughout the whole day, the week opened with a strong boost in risk appetite. Riskier assets, like equities and the commodity-linked currencies, opened higher, while...
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