Today’s Asian session was unfolding briskly. Meanwhile, traders are awaiting crucial economic reports from the US such as inflation data as well as the Fed’s decision on the interest rate and its outlook for the monetary policy. After falling to 97.51 at the beginning of the trading week, the US dollar index inched up in the Asian session. Its growth was supported by high expectations that Jerome Powell would deliver positive remarks on the monetary policy. Nevertheless, some traders are hesitant to make any important decisions due to uncertainty over the US-China trade relations. Both countries are constantly making contradictory statements about a deal, whereas the deadline for the imposition of tariffs is just around the corner. If the countries do not reach a trade agreement and new tariffs are imposed, tensions between the two parties will intensify. Such a turn of events is likely to have a negative impact on the global economy. Yesterday, investors took notice of the Dow Jones News Agency report. It states that the likelihood of the cancellation of tariffs on Chinese goods is high as both sides are actively working on the trade agreement. The dollar/yen pair edged lower as market participants closed most of their long positions on a safe-haven yen. Additionally, the quote of the pair could not break out of the previous trading range, locating near the level of 108.70. In yesterday’s Asian trade review, we talked about an upward movement for the pair provided that chart would be able to consolidate above the level of 108.60. However, as we can see, the pair is losing momentum as traders are holding back in anticipation of official confirmation of the cancellation of tariffs on Chinese imports, as well as the Fed’s press conference. On the other hand, the AUD/USD pair’s decline was in line with our forecast. The chart was unable to fall below the psychological level of 0.68 amid cautious mood in the market. The Aussie returned to 0.6820 despite weak Australia’s consumer sentiment. The quote may rise even higher but the upward movement will be extremely unstable. So, the pair is most likely to remain under bears’ control. The economic calendar for the euro area is empty and speculators are focusing their attention on the UK political news. Overall, traders are holding breath ahead of the meetings of the Federal Reserve, the European Central Bank, and the general elections in the UK. The news about the US-China trade negotiations remains in the limelight. That’s all for now! Subscribe to our channel and stay up to date
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