AUD/USD gathers strength above 0.6400 amid optimism in US-China trade talks

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • AUD/USD gains ground to near 0.6420 in Monday’s early Asian session.

  • China’s CPI fell for the third month amid ongoing economic struggles. 

  • The US and China cite progress in Geneva trade talks.


The AUD/USD pair edges higher to around 0.6420 during the early Asian session on Monday. Optimism in US-China trade negotiations in Geneva, Switzerland, boosts the Australian Dollar (USD) against the Greenback. 


China’s Consumer Price Index (CPI) fell for the third month in April as the country grapples with sluggish spending amid a fierce trade war with the US. Data released by the National Bureau of Statistics of China on Saturday showed that the CPI dropped by 0.1% YoY in April after declining 0.1% in March. The market consensus was for a 0.1% decrease in the reported period. Meanwhile, Producer Price Index (PPI) fell 2.7% YoY in April, compared to a 2.5% fall in March. The figure came in lower than the market consensus of -2.6%.  


The US and China reported “substantial progress” after two days of talks in Switzerland aimed at de-escalating a trade war. China's Vice Premier He Lifeng described trade talks with US officials as “an important first step” in stabilising bilateral trade relations, while US Treasury Secretary Scott Bessent said the two sides made “substantial progress.


However, traders will keep an eye on the US-China trade talks in detail. The US would share details on Monday, and the positive developments could provide some support to the China-proxy Aussie, as China is a major trading partner of Australia. 


Additionally, Chinese officials have eased key monetary policy tools in an attempt to boost domestic economic activity. These include an interest rate cut and a lowering of bank reserve requirements, both of which are intended to stimulate more lending. This, in turn, contributes to the Australian Dollar’s upside. 


* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
EUR/GBP keeps the red above mid-0.8500s after Eurozone inflation dataThe EUR/GBP cross retreats from the vicinity of the 0.8600 mark, or its highest level since April 23 touched earlier this Tuesday and sticks to modest intraday gains through the first half of the European session.
Author  FXStreet
12 hours ago
The EUR/GBP cross retreats from the vicinity of the 0.8600 mark, or its highest level since April 23 touched earlier this Tuesday and sticks to modest intraday gains through the first half of the European session.
placeholder
Dollar Endures Worst Half in Decades: What's Next for 2025?The dollar experienced its weakest first half in more than 50 years, hurt by geopolitical tensions and former President Donald Trump's trade policies.
Author  Insights
12 hours ago
The dollar experienced its weakest first half in more than 50 years, hurt by geopolitical tensions and former President Donald Trump's trade policies.
placeholder
USD/CHF hits fresh long-term lows near 0.7900 as market sentiment soursThe Swiss Franc is one of the strongest G8 performers, amid higher demand for safe havens as risk aversion increased during Tuesday’s European market session.
Author  FXStreet
13 hours ago
The Swiss Franc is one of the strongest G8 performers, amid higher demand for safe havens as risk aversion increased during Tuesday’s European market session.
placeholder
Forex Today: Comments from central bankers at ECB Forum to drive marketsInvestors will keep a close eye on comments from central bankers as the European Central Bank's (ECB) Forum on Central Banking held in Sintra, Portugal, gets underway.
Author  FXStreet
14 hours ago
Investors will keep a close eye on comments from central bankers as the European Central Bank's (ECB) Forum on Central Banking held in Sintra, Portugal, gets underway.
placeholder
USD/CAD remains subdued near 1.3600 due to improved risk appetiteUSD/CAD moves little after registering over half of a percent losses in the previous session, trading around 1.3600 during the early European hours on Tuesday.
Author  FXStreet
14 hours ago
USD/CAD moves little after registering over half of a percent losses in the previous session, trading around 1.3600 during the early European hours on Tuesday.
Real-time Quote