Trump wants Hong Kong problems resolved before the trade deal

The US dollar was flat on Monday in Asia as traders remained cautious ahead of the Federal Reserve minutes to come later this week.

The US dollar index that tracks the green against a basket of other currencies was largely unchanged at 98,072 by 12:37 AM ET (04:37 GMT).

All eyes will be on the Federal Reserve this week as traders await new insights on how the central bank can respond to growing fears of a recession after US Treasury yields overturned last week.

The Fed will publish the minutes of its meeting in July on Wednesday, while Fed Chairman Jerome Powell will deliver a speech on Friday.

Meanwhile, the USD / CNY pair fell 0.1% to 7.0446.

The People’s Bank of China sets the yuan reference rate at 7.0365 today, versus 7.0312 on Friday.

U.S. President Donald Trump dismissed concerns about the economic impact of the trade war with China, saying the US economy “is doing extremely well”. Developments on the Sino-US trade front were in focus.

The president also reiterated that he is not ready to make a trade deal with China, implying he wants to see Beijing deal with ongoing protests in Hong Kong first. “Our customers are rich, I gave a tremendous tax cut, and they are loaded with money,” Trump said Sunday.

“I would like to see Hong Kong work in a very humanitarian way,” Trump said. “I think it would be great for the trade deal.”

The tech giant Huawei was also under the spotlight after Trump said he does not want to do business with the company “at all because it is a national security threat.”

The current deal will end today. The Wall Street Journal and Reuters previously reported that the U.S. was preparing to extend a license that would allow Huawei to buy shares from US companies for 90 days.

“We’ll see what happens. I’m making a decision tomorrow,” Trump said.

The USD / JPY pair was unchanged at 106.36. You are sure to be under pressure earlier today on expectations that policymakers would push a new stimulus in response to slowing global growth.

On Saturday, the People’s Bank of China said it would improve the mechanism used to set the initial loan rate so it can “use market-based reform methods to help lower real credit levels”. .

The AUD / USD pair rose 0.1% to 0.6783, while the NZD / USD pair declined 0.1%.forex.com

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