Asian shares jumped to a 2.5-week high as investors cheered a milestone in the US-China relationship. As Biden and Xi held the virtual meeting, the strong optimism pushed up CNH to its 5-month high against USD. USDCNY is currently trading at 6.3745 at press time. The offshore Yuan, CNH, has also received strong support in morning trade. The pair USDCNH hit 6.3666, the strongest since June 1st.
Both leaders have stressed their responsibility to the rest of the world to avoid conflict, which delivers a positive tone that was rarely seen under the former Trump administration. In the past few years, both sides frequently escalated tensions over contentious issues including Taiwan, trade tariffs, and technology. The optimism coming out from today’s talk is widely regarded as a boon to riskier assets.
Later in the day, we will have the U.S. retail sales data and industrial production in October. These will give another hint about the health of the US economy.