US Assistant Secretary Stilwell: China attitude in talks in Hawaii cannot be described as forthcoming

Anil Panchal FXStreet

US Assistant Secretary of State for East Asian and Pacific Affairs David R. Stilwell recently crossed wires, via Reuters, while offering additional clues of the talks in Hawaii.

Key quotes

China's attitude in talks in Hawaii cannot be described as having been forthcoming.

Will have to see in next couple of weeks whether US-China talks were productive.

Chinese actions of late have not been really constructive, cites India, south china sea, Hong Kong, trade.

Will see in coming weeks if there is a reduction in China's aggressive behavior.

Chinese actions on trade have not lived up to billing.

US would like to find ways to cooperate with china on North Korea, also positive engagement on arms control.

US looks forward to china reconsidering national security legislation on Hong Kong.

Trade is a good acid test to see if China will be a cooperative partner.

Overall US-China relationship is tense’.

US made position known to China about what it expects on coronavirus cooperation, still insists on transparency.

China needs to allow in neutral observers for coronavirus transparency .

North Korea is an obvious potential area for cooperation with China.

China made a clear commitment to follow through on Phase one of trade agreement.

FX implications

While the news should have ideally added strength into the market’s current risk-off mood, the early Asian morning restricts the reaction to the update. Even so, AUD/USD stays on the back foot for the fourth day in a row while declining from 0.6856 to 0.6849 as we write on Friday’s initial Asian session.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.