Australian Dollar loses ground as US Dollar advances amid improving US-China dialogue
The Australian Dollar (AUD) declines against the US Dollar (USD) on Wednesday, retracing its recent gains. However, the AUD/USD pair may gain ground amid easing trade tensions between the United States (US) and China. Any economic change in China could impact AUD as China and Australia are close trade partners.
US Commerce Secretary Howard Lutnick indicated potential resolutions with China. On Tuesday, Lutnick noted that the US and China have reached a framework to implement the Geneva Consensus and are now seeking approval from US President Donald Trump, according to Bloomberg.
US negotiators also noted that they “absolutely expect” the issues around shipments of rare earth minerals and magnets will be resolved with the framework implementation. While China’s Vice Commerce Minister Li Chenggang said that communication with the United States has been rational and candid, he will report on a framework to Chinese leaders.
Source: FXStreet