China and US had constructive discussions about phase one deal – Xinhua

Not only trade-positive comments from the United States (US) but Chinese media were also on the welcome site of the latest round of phone calls between their diplomats. China’s Xinhua mentions that Chinese Vice Premier Liu He held a phone conversation at the request of U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Saturday morning. The report also says that the talks were constructive.

Key quotes

“During their talks, the two sides had constructive discussions on each other's core concerns in the "phase one" deal, and agreed to maintain close communication.”

FX implications

News like this could add strength to the market’s risk tone and helps the riskier assets while dimming prospects of the safe-havens. As a result, commodity-linked currencies like the Dollars of Australia, New Zealand and Canada could have additional supports while Japanese Yen (JPY) and Gold will have to stand down due to their safe-haven appeal.