U.S. Dollar Rises on Upbeat Trade News

The U.S. dollar jumped on Tuesday as upbeat trade news helped lift sentiment, with reports suggesting the U.S. is ready to compromise on some of China’s core demands.

China President Xi Jinping stressed on Tuesday China’s commitment to global trade and said that the country would “open its doors only wider” to the world, but did not make any mention of ending the trade war with the U.S., which has dragged on for more than 16 months.

China is pushing the U.S. to remove some of the tariffs imposed in September as part of the phase one trade deal that the two nations are hoping to sign before the end of the year, according to various reports. It’s unclear how much it would give up in return.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, gained 0.14 to 97.750 as of 10:56 AM ET (15:56 GMT).

The safe-haven Japanese yen was lower with USD/JPY up 0.5% to 109.10.

Elsewhere, the euro was lower due to the strength of the greenback, with EUR/USD down 0.5% to 1.1071. Sterling dipped, with GBP/USD down 0.1% to 1.2873.

The Australian dollar was down from earlier highs of 0.6912 after the Reserve Bank of Australia left its cash rate at a record low of 0.75% and reiterated its concern about consumer spending. It said rates are likely to remain low for an extended period. AUD/USD was up 0.2% to 0.6892.forex.com

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