ANZ: China/US trade negotiations, market optimism, despite lack of concrete outcomes

During the US afternoon we got a jump for AUD/JPY (a key 'risk' indicator) on the back of

• US mulls lifting China tariffs as an attempt to break trade stalemate

Which was soon officially denied

• Wait a minute. Treasury says no recommendations made on tariffs

The market is hungry from good news on this front, obviously.

Comments via ANZ:

US-China trade negotiations

• The signs out of the recent trade talks in China are promising and have boosted market optimism, despite the lack of concrete outcomes.
• We expect the market rout and weakening economic data may force both parties towards a deal.
• The downside is that commodity markets could feel renewed pressure if a happy middle ground isn't found.

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I do wonder if the "lack of concrete outcomes" will only become more obvious as the three months tick by.