US-China Trade Talks Boost Global Markets
Global markets remained mostly stronger overnight, boosted by the positive start to US-China trade talks.
The talks got underway ahead of a key meeting later this week between Chinese President Xi Jinping and US President Donald Trump. Preliminary discussions between US Treasury Secretary Scott Bessent and China’s top trade negotiator Li Chenggang were reportedly held in a 'positive atmosphere', according to Chinese media reports.
Risk sentiment was also supported by the fourth consecutive day of declines in oil prices, which helped ease concerns about inflation and its impact on global growth.
The Aussie dollar outperformed as improving risk sentiment and softer oil prices boosted demand for growth-linked currencies. The AUD/USD edged higher overnight, while the NZD/USD traded modestly lower.