Global macro overview for 03/12/2018

China and the US have agreed to suspend the introduction of new duties, as both countries take part in trade talks to reach an agreement within 90 days, the White House said after the meeting of US President Donald Trump and President Xi Jinping.

Trump agreed not to raise tariffs from 10% up to 25% for Chinese commodities worth USD 200 billion per year on January 1, as previously announced, because China agreed to buy an undefined, but "very large" amount of agricultural, energy, industrial and other products - said the White House. The White House also said that China "is open to accepting the previously unacceptable Qualcomm Inc NXP contract if it were presented again."

The White House said that if an agreement on trade, including technology transfer, intellectual property, non-tariff barriers, cyber-theft and agriculture would not be achieved with China within 90 days, both sides agree that 10% tariffs will be increased to 25 percent. The White House reported that China agreed to start "immediate" purchases of American agricultural products.

The leaders of both countries met at a working dinner after the G20 summit in Argentina. This was the first meeting of both leaders since the US and China imposed import duties on themselves.

Earlier, Washington imposed a penalty of 25 percent on Chinese goods worth $ 50 billion a year and 10 percent tariff on next products worth $ 200 billion a year. With regard to this second party of goods, customs duties were to rise to 25 percent at the beginning of next year.

Let's now take a look at the US Dollar technical picture at the H4 time frame. The market has failed to break out above the technical resistance at the level of 97.69 and made a lower high at the level of 97.55 before it dropped to the support at the level of 96.66. Currently, the price is trading around this level, but the market conditions are now suggesting more downside move as the momentum is still weak and negative, the same is the stochastic indicator. The next technical support is seen at the level of 96.32.

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