China tariff waivers on some U.S imports added to hopes that the easing of virus-led business shutdowns would help jump-start a battered global economy.
China announced a new list of 79 U.S. products eligible for waivers from retaliatory tariffs imposed at the height of the bilateral trade war. This move came amid the continued pressure on Beijing to boost imports from the United States.
China’s finance ministry said in a statement the new waivers will take effect on May 19 and expire on May 18, 2021. The latest list waives tariffs on products including ores of rare earth metals, gold ores, silver ores and concentrates. The ministry did not disclose the imports value of the products.
Beijing and Washington’s top trade negotiators held a call last week and discussed implementation of the Phase 1 deal signed in January.
Renewed tensions between the two countries, sparked by the COVID-19 pandemic are also raising questions about the trade truce.
U.S. President Donald Trump has threatened to terminate the deal if China fails to meet its purchase commitments.
START TRADINGForex – China tariff waivers boost sentiment
Data at 8:30 a.m. ET is expected to show the impact of lockdowns on U.S. consumer prices last month. The focus for this week is the retail report for April due on Friday. Also, traders will be looking for Fed Chairman Jerome Powell’s speech on current economic issues on Wednesday.
The US dollar fell as investor risk appetite rose, boosted by continued U.S. Federal Reserve action to battle economic devastation. Even a small hint of positive coronavirus news limits the dollar’s appeal as a safe-haven currency.
The dollar index was down 0.4% at 99.807.
The dollar, meanwhile, fell 0.3% against the yen to 107.30.
The Australian dollar fell earlier, dipping to a five-day low of US$ 0.6432 after China banned some Australian meat imports. It later pared losses as Australia’s trade minister played down the issue as a technicality and was last trading up 0.3%. It was last up 0.3% at US%0.6510.
The euro was last up 0.6% against the U.S. currency at $1.0865. Though it was still not too far from the $1.0636 low touched at the end of March when the pandemic sent markets into turmoil.
Sterling extended Monday’s losses on Tuesday, hitting a 20-day low versus the euro. Confusion over government plans to ease lockdown measures and revived Brexit risks all weighed on the pound.
The pound extended Monday’s losses against both the dollar and the euro. Versus the dollar, it was last at $1.2314, down 0.2% from New York’s close. Against a stronger euro, the pound fell to its lowest since April 22 and was last down around 0.7%.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money