The USD strengthened yesterday, because we heard news that a highly anticipated agreement between the US and China might be just four weeks away.
President Trump suggested that while there was still a lot of work to be done the two countries could have an agreement on work, with only a few documents to be done over the next two weeks. However, the news was welcomed with caution because many were hoping for several types of summits between the two leaders to increase confidence in the talks.
There are still several other major obstacles that must be overcome, including when and how to increase current tariffs in China and how enforcement of intellectual property rights actually occurs.
While stocks were slightly higher in this session, the USD bounced strongly from the 97.00 level. Across the board, strong commodities are led by oil and gold.
All focus is now turning to the US jobs report due out Friday. The market is looking for around 185,000 new jobs created last month, but the recent ADP report has completely missed, adding some concern to the final results.
Wrap Asian Session
Not much happens in Asian trade through data. Some Japanese data on household spending came in weaker than expected while all majors were completely flat in the session so far.
This is a holiday in China and Hong Kong so the possibility of silencing trade to some extent, and given that all the focus is on US employment reports, the range may be small up to that point.