The Japanese Yen lost favor among FX traders during Monday trade in Tokyo after it was agreed by their respective administrations that China and the United States would resume trade discussions. President Trump also agreed to offer some concessions on both tariffs and restrictions for China-based Huawei Technologies. That announcement came after a sidebar meeting between President Xi Jinping and Mr. Trump earlier in the weekend. Beijing agreed that they would import more farm products from the United States as its concession to the talks.
As reported at 10:22 am (JST) in Tokyo, the USD/JPY was trading higher at 108.2470 Yen, a gain of 0.3960%; the pair is off of the earlier peak of 108.511 Yen, while the low was recorded at 108.100 Yen. The safe haven Swiss Franc was also down against the greenback, with the USD/CHF trading higher at 0.9803 Swiss Francs, a rise of 0.4498%.
Outlook Improves for Kiwi and Aussie
It was also agreed that the US Department of Commerce would review the status of Huawei with a view to withdrawing it from the banned list. Analysts say that an end to the protracted trade rift between the US and China could provide a lift to commodity-linked currencies higher. Currently, however, with the AUD/USD is trading lower at $0.7007, down 0.1567% while the NZD/USD is lower at $0.6707, a loss of 0.1608%.