No big moves so far
There has been one market moving headline so far today. It came from the Financial Times in a report saying the US is considering or 'debating' dropping the tariffs on China that were imposed Sept 1.
The report was foreshadowed by an earlier report saying China was asking (demanding?) that those tariffs be lifted as part of a Phase One deal.
Yen crosses rose as the FT story did the round with USD/JPY rallying to 108.75 from 108.60. There are similar-sized moves elsewhere that have boosted S&P 500 futures and weighed on gold.
Myself, I'm a bit more skeptical that this is unequivocally good news. Indeed, it would be great to get those tariffs removed but both stories hint at a tug-of-war in the White House about how to respond. If they balk, the deal could unravel.
That said, Xi's big speech was constructive as he said China will strengthen IP protections and open up its markets.
Aside from yen crosses, there isn't much to report on in the FX market. the euro is a touch soft after a weak finish yesterday. AUD/USD is steady at 0.6885 ahead of the RBA in about 30 minutes.
