White House: US President Biden and China's Xi speak by phone for first time since February

Anil Panchal FXStreet

Early Friday, Reuters came out with the news, quoting the White House, of the first phone call between US President Joe Biden and his Chinese counterpart Xi Jinping.

The news mentioned that Thursday’s talks were, “Ending a nearly seven-month gap in direct communication between the leaders of the world's two largest economies.”

Additional quotes (from Reuters)

Biden-Xi call a test of whether direct leader-level engagement can move relations forward.

Lower-level talks with China have not been fruitful.

Biden call with Xi not intended to discuss "costs" for Beijing's lack of cooperation.

Biden knows history will judge him and Xi by how they manage US-China competition and he takes this seriously.

US will not trade away progress on transnational issues with china for something that's not in interests of American people.

US not seeking specific outcomes or agreements from Biden-Xi call, but broad, strategic discussion about how to manage the competition.

Biden and Xi had ‘a broad, strategic discussion’

Discussed areas where our interests converge, and areas where our interests, values, and perspectives diverge.

Biden underscored the United States' enduring interest in peace, stability, and prosperity in the Indo-Pacific

Biden-Xi call is a test of whether direct leader-level engagement can move relations forward.

Discussed the responsibility of both nations to ensure competition does not veer into conflict.

President Biden underscored the United States' enduring interest in peace, stability, and prosperity in the Indo-Pacific and the world and the two leaders discussed the responsibility of both nations to ensure competition does not veer into conflict.

Market implications

Following the sentiment-positive news, prices of gold and AUD/USD refresh intraday tops around $1,797 and 0.7380.

Read: US 10-year Treasury yields, S&P 500 Futures portray cautious optimism

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 keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.