The dollar was lower late Friday as some confidence for the continuing trade discussions with China buoyed trade-linked currencies like the euro and the British pound. Versus a bucket of six major currencies, the greenback index was down 0.17% at 97.85 in late trade.

Overall, the market took a cautious start of the week as traders are still confused about whether the US and China will be able to pull off a deal or not to end their trade war that has been a burden on global economic growth.

During the weekend, Chinese state media Xinhua published that both nations had held “constructive discussions” on trade in a high-level phone call. However, the detail given was too limited to drive any strong sentiment.

Yet, the positive news has dented the safe-haven demand, which is keeping the US dollar supported versus the yen as it traded at 108.75, soaring from 108.235 placed on Thursday over growing concerns of a US-China trade agreement.

Watchlist – Economic Events Outlook

EUR – German Buba Monthly Report – 11:00 GMT
The report contains relevant articles, speeches, statistical tables, and provides a detailed analysis of current and future economic conditions from the bank’s viewpoint.

The Bundesbank is due to release to report at 10:00 GMT, but the report tends to have a muted impact as all the information has already been known to investors. However, the market impact tends to be higher when the report reveals a viewpoint that clashes with the ECB’s stance.

USD – NAHB Housing Market Index – 15:00 GMT

The National Association of Home Builders (NAHB) is due to report the US housing market index, which is a survey of about 900 home builders, which asks respondents to rate the relative level of current and future single-family home sales.

The outcome is mostly compared with the 50 threshold. Thus, above 50 indicates a favorable outlook on home sales, below indicates a negative outlook. Economists are expecting a figure of 70, which is way more than 50 levels, and it may keep the US dollar supported today.

AUD – RBA Assist Gov Kent Speaks
The Reserve Bank of Australia Assistant Governor (Financial Markets) Christopher Kent is due to participate in a panel discussion titled “Regulatory update on benchmarking” at the Australian Securitisation Forum in Sydney. Since audience questions expected, we should be ready to capture the market on any surprising answer from Governor Kent.

As I mentioned earlier, the economic calendar is a bit light today, and that’s pretty much all for today. Stay tuned for your technical trade setups, which may offer us trade opportunities today. Good luck!