US-China trade talks begin positively
Global markets were mostly stronger overnight, with the Aussie among the beneficiaries, as US-China trade talks got off to a positive start ahead of a key meeting later this week.
Chinese President Xi Jinping is set to meet US President Donald Trump in the US later this week, while preliminary discussions between US Treasury Secretary Scott Bessent and China’s top trade negotiator Li Chenggang were reportedly held in a “positive atmosphere”, according to Chinese media reports.
Risk sentiment was also supported by a fourth consecutive day of declines in oil prices, helping ease concerns about inflation and the impact of higher energy costs on global growth.
Aussie outperforms as oil prices retreat
AUD/USD edged higher as improving risk sentiment and softer oil prices supported demand for growth-linked currencies.
The NZ dollar underperformed its Australian counterpart, with NZD/USD trading modestly lower overnight.
Despite the softer kiwi, broader currency moves were relatively contained ahead of this week’s key political and economic events.
Euro remains under pressure
The euro and British pound remained under pressure, with concerns that higher inflation could weigh on growth prospects and leave policymakers facing difficult trade-offs.
The euro was notably weaker across Asian trading, extending its recent decline.
The Australian dollar also benefited from ongoing weakness in the euro, helping AUD/EUR climb to its highest level in more than 12 months.
Meanwhile, EUR/SGD fell to its lowest level since June last year, highlighting the broader weakness in the single currency.
Euro weakness sees AUD/EUR above 0.6200
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 21 to 26 September
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
