Australian dollar, markets sink as trade deal sours

See the latest Australian dollar analysis here:

Macro Afternoon

So says SCMP:

Deputy-level trade talks between the US and China aimed at laying the groundwork for high-level negotiations later this week failed to yield any progress on critical issues, according to two sources with knowledge of the meetings.

During the discussions on Monday and Tuesday in Washington, the Chinese refused to talk about forced technology transfers, one source said, which is a core US grievance regarding China’s economic policies.

Speaking on condition of anonymity, the person said that talks had also skirted the issue of state subsidies, which the Trump administration says give Chinese companies an unfair advantage over international competitors.

Deputy-level negotiators, led on the Chinese side by vice-minister for finance Liao Min, spent the time focusing on only two areas: agricultural purchases and intellectual property protection.

“They have made no progress,” said another source familiar with the talks, adding that the Chinese side had not made headway in persuading US negotiators to consider a freeze on tariff increases, a main priority for Beijing.

The Chinese delegation is planning to leave Washington on Thursday after just one day of principal-level talks, said the second source. Beijing’s negotiating team, headed by Vice-Premier Liu He, had previously planned to leave Washington late on Friday, allowing for up to two full days of talks.

AUD getting falling again:

S&P futures not happy:

Or not:

David Llewellyn-Smith
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  1. the CCP will not give anything at all. Stalling tactics as they hope domestic pressure on POTUS will give them what they want – status quo.

    At least POTUS Trump is doing something to address the selling out of Western economies as an indirect result of his desire to reposition the US. God help us if we had to rely on our own ‘leadership’ …..

    Hopefully more people (you know : ‘deplorables’, sheeple here, complacent middle class and so on) will begin to understand what’s involved ….

    • I’m guessing it is so. If hk wasn’t a problem it’s possible XJP could have sold a deal of some sort (and I’m sure they would have intended to get it signed only and reap some benefits, not follow through on implementing the really tricky bits) if they thought it would be of benefit to them. But honestly I can’t see how they can sign anything without it being interpreted only as a massive loss of face and it showing Chinese weakness, weakness which isn’t supposed to exist anymore. The domestic audience will not allow that atm. Mainlanders are pissed about hk and many will believe it is all orchestrated by the us and UK and doesn’t come from the locals. Plus with nba and South Park (both American, obviously) they’ll be even more reluctant to do anything that involves concessions right now. The Mainlanders believe their propaganda, they’re strong, worthy of respect and the worldneeds to see things their way so no I can’t see the gov signing anything atm