The US Department of Agriculture Secretary Sonny Perdue said, as per Reuters, that China will soon begin buying U.S. farm goods to meet the $40 billion in agricultural purchase agreements it made, alleviating growers’ need for more aid.
If China is going to achieve that, and we believe they are, we think they have to buy earlier than the traditional export season from the United States.
His remarks came one day after U.S. President Donald Trump addressed the convention, promising farmers that the deal will be good for them.
Perdue said the third tranche of a $16 billion aid package announced in May will be paid to farmers ‘imminently,’ but that they should not expect a 2020 aid package.
Chinese Vice Premier Liu He said Chinese firms will buy American products, ‘based on market conditions,’ raising doubts that the country will meet its commitments under the pact.
News like this generally helps improve the market’s risk tone. That said, the USD/JPY, Gold and AUD/USD show a less reaction by the press time as traders await further clues after the US markets were off on Monday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
AUD/USD slips below 0.6700 as downbeat Australia inflation recall Aussie bears
AUD/USD drops 20 pips to 0.6690 as Aussie inflation disappoints during early Wednesday. In doing so, the risk barometer pair snaps two-day winning streak. That said, Australia’s Monthly Consumer Price Index dropped to 6.8% YoY in February versus 7.2% expected and 7.4% prior.
USD/JPY: 200-HMA prods bulls around mid-131.00s
USD/JPY struggles around intraday high as the key moving average challenges the Yen pair buyers during early Wednesday. Also testing the upside momentum are the overbought conditions of the Relative Strength Index (RSI) line, placed at 14.
Gold to extend choppy trading, awaiting a fresh catalyst Premium
Gold price has paused the previous rebound early Wednesday, as the United States Dollar (USD) seems to have found its feet following a rough start to the week. However, the underlying strength in the US Treasury bond yields so far this week could limit the Gold price advance.
This is how Arbitrum and Optimism are dragging users away from Ethereum
Arbitrum became the highlight of the month as the Layer-2 (L2) blockchain launched its native token, ARB. Since then, the L2 narrative that was once the talking point of 2022 has exploded again.
Unfazed: Confidence edges higher despite banking situation
Consumers may not love the present conditions, but a slightly more upbeat take on where things are headed was enough to give overall confidence a nudge in the right direction in March.