AUD/USD softens to around 0.6390 in Monday’s early Asian session.
De-escalation in the US-China tariff war provides some support to the US Dollar.
China vowed to support firms and workers affected by tariffs.
The AUD/USD pair trades in negative territory near 0.6390 during the early Asian session on Monday. The US Dollar (USD) edges higher against the Aussie amid signs of easing US-China tensions. China will hold a press conference about policies and measures on stabilizing employment and ensuring stable growth on Monday, which will be closely watched by traders.
The Greenback posted its first weekly gain since mid-March on Friday after China granted some tariff exemptions for US imports. This raises hopes that the trade war between the world's two largest economies is nearing an end. China exempted some US imports from its 125% tariffs on Friday, according to businesses, although China quickly knocked down US President Donald Trump's assertion that negotiations between the two countries were underway.
Friday's statement by the Politburo focused on efforts to maintain stability at home by supporting firms and workers most affected by US tariffs. The National Development and Reform Commission, Ministry of Human Resources and Social Security, Ministry of Commerce and People’s Bank of China (PBOC) will jointly hold the conference on Monday.
The Chinese authorities reiterated plans to accelerate debt issuance, ease monetary policy and vowed to support employers to safeguard jobs. Any signs of large stimulus plans could boost the China-proxy Australian Dollar (AUD), as China is a major trading partner of Australia.
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