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US President Joe Biden met his Chinese counterpart Xi Jinping during the G20 summit in Bali. The versions of the outcome vary per national news outlets. Biden said they are not looking for conflict and will not be a new Cold War. Chinese media reported that Xi warned Washington about crossing Taiwan-linked “red line”. Both Biden and Xi said they wanted to find the right direction and manage their differences.
The dollar has managed to recover some temporal demand at the beginning of the week but rapidly resumed the downtrend declining ahead of the US session’s opening, ending the day near its recent lows against most major rivals.
Investors see the dollar’s near-term appreciation as an opportunity to sell it, reflecting that the tie has changed. At the same time, global stocks struggled to extend last week’s rally, but most indexes posted gains, while US government bond yields edged higher.
Economic Data
Monday witnessed no release of significant macroeconomic data during the US session.
Other Developments
Traders and investors are digesting news coming from China, as record coronavirus infections are reported from the capital and other big cities. The government has a zero-covid policy in place, which could lead to lockdowns and the interruption of global shipments. The country will release some key data on Tuesday, which may lead the market’s sentiment, at least throughout the Asian session.
There are growing hopes that tensions between Russia and Ukraine could ease in the near future as Moscow retreated and Ukrainian President Volodymyr Zelenskyy noted the country is ready for peace.
The EURUSD pair trades a few pips below Friday’s high at 1.0363 while GBPUSD battles to regain the 1.1800 level. The Australian Dollar reached a fresh November high in the 0.6720 area and is poised to extend its advance. The USDCAD pair, on the other hand, ticked north and trades around 1.3290 amid the poor performance of oil. Crude oil prices were sharply down amid Chinese news, with WTI trading at around $86.10 a barrel.
Gold is still maintaining robust stance, with XAUUSD now hovering around $1,773 per ounce. The USD/JPY is up, a few pips below the 140.00 threshold, while USDCHF is down, hovering around 0.9410.
Oil prices settled around $3 lower on Monday, dragged down by a firmer U.S. dollar while surging coronavirus cases in China dashed hopes of a swift reopening of the economy for the world’s biggest crude importer.
Brent crude futures settled down $2.85, or 3%, at $93.14 a barrel after gaining 1.1% on Friday. WTI crude futures settled down $3.09, or 3.47%, to $85.87 after advancing 2.9% on Friday.
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