Strategically hitting just minutes before the market close to push today's record Dow point gain into even greater overdrive, Bloomberg just reported that a U.S. government delegation will travel to Beijing in the week of Jan. 7 to hold trade talks with Chinese officials.
The mid-level delegation will be absent US Trade Rep Robert Lighthizer - who Trump recently said would be in charge of the China negotiations - but instead will be headed by deputy U.S. Trade Representative Jeffrey Gerrish will lead the Trump administration’s team, which will also include Treasury Under Secretary for International Affairs David Malpass, with Bloomberg reporting that next month’s meeting will be the first face-to-face discussion the two sides have held since President Donald Trump and China’s Xi Jinping agreed on a temporary truce in Argentina at the start of December. The news comes after Treasury Secretary Steven Mnuchin said last week that the U.S. team and its Chinese counterparts have held discussions over the phone.
As a reminder, Trump agreed to put on hold a scheduled increase in tariffs on some $200 billion in annual imports from China while the negotiations take place through March 1. Beijing has agreed to resume buying American soybeans and to at least temporarily lower retaliatory tariffs on U.S. autos.
While it was unclear what impact the news had on the market which was already up 1,000 points when the Bloomberg flashing red headline hit, the report spiked the AUDUSD to session highs, rising 0.5% on the day in a day that has seen sheer chaos in FX, with the dollar initially tumbling, then soaring.