The Australian dollar and Chinese yuan climbed early Monday amid speculation that the U.S. and China were nearing a trade agreement after a year of tariff disputes, according to Reuters.
A report from the Wall Street Journal cited potential progress in negotiations, suggesting a formal deal could emerge around March 27. The Australian dollar rose 0.4% to $0.71055, while the New Zealand dollar gained 0.45% to $0.6823. The yuan advanced 0.25% to 6.6970 against the dollar in offshore trading, approaching its 7.5-month high of 6.6737 set in late February 2018.
U.S. President Donald Trump criticized the Federal Reserve’s monetary policy, sparking yen gains that offset some dollar declines. The greenback traded at 111.77 yen after dipping to 111.75 following his remarks. Trump stated, "We have a gentleman that likes a very strong dollar at the Fed... I want a strong dollar, but I want a dollar that’s great for our country not a dollar that is so strong that it is prohibitive for us to be dealing with other nations."
Soft U.S. economic data, including a 2016-era low in factory activity and declining personal income, contrasted with expectations of delayed interest rate hikes. Analysts noted upcoming central bank meetings in Europe, Australia, and Canada could further influence currency markets.
The euro held steady at $1.1378, while the British pound rose 0.2% to $1.3238 amid reduced Brexit no-deal fears after UK Prime Minister Theresa May signaled potential delays to the exit process.
