Here is the nugget that caught the market’s eye.
For now, the United States is setting aside potentially the most divisive issue in the relationship, deferring a decision on whether to accuse China of manipulating its currency, the renminbi, until well after Mr. Hu’s visit, according to a senior administration official. That decision, the official said, reflects a judgment that threatening China is not the best way to persuade it to allow the renminbi to appreciate against the dollar.
Receding US/China tensions soothes fears that China will dump Treasuries and dollars.
EUR/USD is under pressure as the greenback gains across the board. US yields continue to rise after the employment report, with 10-year notes now at 3.93% and 2-year notes at 1.08%.
USD/JPY trades at 94.50 after a pop to 94.54. AUD is a shade easier, at 0.9192.