Australian government bonds jumped during early Asian session Friday even as risk sentiments among investors rebounded, following expectations of a resumption in trade talks between the United States and China after a series of sour emotions between the two nations.
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, fell nearly 1-1/2 basis points to 2.555 percent, the yield on the long-term 30-year bond also dipped-1/2 basis points to 3.048 percent and the yield on short-term 2-year remained tad lower at 2.003 percent by 03:00GMT.
Risk sentiment improved following news that the US and China will resume trade talks later this month. This, along with the tick down in the unemployment rate seen yesterday, has lifted the AUD to the top of the G10 performance. Risk appetite is likely to remain the key driver for the AUD today, ANZ Research reported in its 'Morning Focus'.
US equities pushed higher on the back of strong earnings from the retail giant Walmart. The DJIA and S&P were up 1.6 percent and 0.8 percent respectively. European shares rose 0.6-0.8 percent with news that China and the US are opening up trade talks again.
Turkish markets traded sideways. Mnuchin said the US is preparing more sanctions on Turkey if the American pastor Andrew Brunson is not released. The USD zig-zagged, paring back initial losses after US sanctions against Turkey made headline, the report added.
Meanwhile, the S&P/ASX 200 index traded 0.20 percent higher at 6,293.0 by 03:10GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 67.36 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex


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