国内英语资讯:News Analysis: Robust yuan points to market confidence in Chinese economy_时事

国内英语资讯:News Analysis: Robust yuan points to market confidence in Chinese economy

Ben Randol, a senior foreign exchange strategist at Bank of America Merrill Lynch, also believed that the global foreign exchange (FX) market and other asset classes have recently been "infused with optimism about a U.S.-China trade deal," which has led to a declining tendency in the dollar.

"The more positive progress on U.S.-China trade policy is perceived to be, the more strength we see in traditionally riskier currencies, such as AUD, as well as the currencies of more economically open economies, such as the euro," Randol told Xinhua.

The Australian dollar (AUD), widely regarded as a barometer of global risk sentiment, extended marked gains against the greenback for three days during the week, i.e. Tuesday, Wednesday and Friday, ending the final trading day at 0.7133 per dollar, a sharp increase of 0.75 percent from the previous day.

Some analysts cautioned that a disruption to the trade relationship between China and the United States would roil international economies.

"The trade negotiation between the Unites States and China has a direct influence on the currency markets," said Anthony Minardo, vice president and FX trader for Bank Leumi USA. "There will be a massive increase in currency volatility and large revaluations of global currencies (in case of deterioration of trade tensions)."

DOVISH FED PRESSURING GREENBACK

Trade optimism has not been the only relevant factors behind year-to-date FX moves. As global FX markets have already priced in a series of positive updates regarding trade, other drivers tend to be longer term and are likely to play a growing role looking ahead.