Sideways price action is seen on the Asia trade opening, with the regional bourses mixed following a moderately positive but range-bound trade were in play in Wall Street. During yesterday’s session, important headlines were crossing the wires regarding the trade front. China halted corn purchases and limited U.S. cargoes; U.S. Trade Representative Katherine Tai is set to hold conversations with China this week. Investors will be paying attention to updates on the matter which is linked to the Phase 1 trade deal that the then U.S President Donald Trump forged with China in late 2019.
For the coming days, on the data front, traders are now looking at Durable Goods print today, and the FOMC’s inflation benchmark, the April Personal Consumption Expenditure (PCE), on Friday. A strong reading could support the recent rhetoric from hawkish Fed speakers regarding the beginning of talks about tapering the asset purchases. On the technical front, it is worth noting that month-end flows are on the fray, which could bring some soft USD buying ahead of the London FX Fixing, particularly by FX participants who need to hedge their operations against the buck.
