US-China diplomats held candid talks, agree to meet again

Anil Panchal FXStreet

US Secretary of State Antony Blinken and Chinese Foreign Minister Qin Gang on Sunday held what both called candid and constructive talks on their differences from Taiwan to trade but seemed to agree on little beyond keeping the conversation going with an eventual meeting in Washington, reported Reuters.

The news stated, “Making the first visit to China by a US secretary of state in five years, Antony Blinken stressed "the need to reduce the risk of misperception and miscalculation" in his talks with Foreign Minister Qin Gang, the China State Department said.”

Key statements

US and Chinese officials both emphasized their desire for stable and predictable relations, but China was clear it regards Taiwan as the most important issue and greatest risk.

Qin Gang pointed out that the Taiwan issue is the core of China's core interests, the most important issue in Sino-U.S. relations, and the most prominent risk.

US officials and analysts expect Blinken's visit to pave the way for more bilateral meetings between Washington and Beijing in the coming months, including possible trips by Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo. It could also set the stage for meetings between Xi and Biden at multilateral summits later in the year.

US officials have since last week played down the prospect of a breakthrough during the trip, but said Blinken's primary goal was to establish open and durable communication channels to ensure strategic rivalry between the two countries does not spiral into conflict.

Apart from the US-China talks, news from the South China Morning Post (SCMP) quoting China State Council also flash positive signals for the sentiment as it said, “The Council considered a batch of macroeconomic policies designed to expand ‘effective demand’, strengthen the real economy and defuse risks in key areas.”

AUD/USD grinds higher

The news fails to impress AUD/USD bulls despite allowing the risk-barometer pair to grind higher towards 0.6900, up 0.05% amid early Monday’s Asian session.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

AUD/USD holds firm near 0.7000 after Chinese inflation, trade data

AUD/USD stays firm near 0.7000 in Wednesday’s Asian session, picking up some bids after China's mixed inflation and upbeat trade data. CPI rose less than expected in September, while PPI inflation picked up. Meanwhile, the Chinese trade surplus unexpectedly widened in September. The pair remains underpinned by a broadly subdued US Dollar, despite the Middle East escalation, as focus remains on US CPI data.

USD/JPY consolidates near 158.50; looks to US CPI for fresh impetus

USD/JPY stays range-bound near 158.50 in the Asian session on Wednesday, with looming intervention risks supporting the Japanese Yen and capping upside amid a softer US Dollar. However, geopolitical uncertainties act as a tailwind for the safe-haven USD and the pair. Traders also seem hesitant ahead of the release of the latest US inflation figures.

Gold drifts lower with US CPI, Fed speakers in focus

Gold extends losses on Wednesday, despite the lower US Treasury yields, with investors looking from the sidelines ahead of the release of September’s US Consumer Price Index report and speeches from Federal Reserve officials due later in the day. The XAU/USD pair has retreated below the $4,150 level after rejection at the $4,200 area on Monday, with technical indicators showing building bearish momentum.

Bitcoin eyes $85,000; ETH holds support, XRP stabilizes

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) show signs of recovery on Wednesday as buyers try to regain control after their recent market weakness. BTC extends its rebound toward the $85,000 resistance, while ETH and XRP find support around key levels.

US CPI data expected to rise in September as markets reassess Fed rate outlook

The US Bureau of Labor Statistics will publish the September Consumer Price Index (CPI) data on Wednesday. The report is expected to show a further increase in headline prices and a small uptick in annual core inflation. Any divergence from analysts’ estimates could influence the Federal Reserve’s policy outlook and impact the US Dollar’s valuation.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?