Australian dollar is the top performer today
The theme today is hope and progress. The US and China took steps toward a trade truce and Donald Trump delayed planned March 1 tariffs.
Given the 5.6% rally in the Shanghai Composite today, you would have expected a bit more upside in the Australian dollar. If you scroll back, today's rally in AUD/USD only erases the decline from late last week.
The big question that everyone is asking right now is this: Is a US-China trade deal priced in? Obviously, if you look at Chinese shares then the answer is an emphatic no. Whereas US stocks or AUD would argue that it was expected.
That leaves a messy market and should make anyone on either side of the trade nervous.
