Eyes On Sino-U.S. Mood Music

Broader sentiment improved in response to headlines pointing to a phone call between top U.S. and Chinese trade officials, even as there was little to surprise in subsequent comments from both sides. Selling pressure hit safe haven currencies, with only the loonie faring worse in the G10 basket. Remaining commodity-tied currencies traded on a firmer footing, but it was GBP that topped the pile as cable attacked $1.3100.

• USD/CNH dipped under yesterday's worst levels in reaction to Sino-U.S. trade headlines, but trimmed losses thereafter. During their phone call, U.S. Trade Rep Lighthizer, U.S. Tsy Sec Mnuchin & Chinese Vice Premier Liu discussed the implementation of bilateral phase-one trade deal and coordination of economic policies.
• USD/Asia lost ground amid better sentiment, with KRW pacing gains. IDR drew some initial support from Bank Indonesia's plans to create regulations that would require big natural resources exporters to convert their FX earnings into the rupiah.
• Worth noting that cautious optimism surrounding research into Covid-19 vaccine/treatment may have helped to keep sentiment positive.
• German Ifo Survey & final GDP, U.S. Conf. Board Cons. Conf. & new home sales, Norwegian GDP and comments from BoC's Schembri & Fed's Daly take focus from here.