Although the market has little hope in the meeting between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, it is in a waiting position pending the meeting between the two presidents who will take place on tomorrow. Since it is unlikely that Trump will lift the sanctions on Huawei, it is likely that the G20 will only lead to a postponement of customs duties to again save time. The likelihood of a finalized commercial deal being announced this weekend is very low.
In terms of the impact on the U.S. dollar on the Forex, it is quite obvious that the U.S. Federal Reserve will act according to the outcome of discussions this weekend. The FED unveils its next monetary policy decision on Wednesday, July 31, and the market is still anticipating a 25-basis-point drop in the interest rate.
But these remains open between a business-as-usual scenario, a downward scenario of 25 bps and a downward scenario of 50 bps. However, the impact on the U.S. dollar will be very different.
Still on the fundamentals of the major central banks, remember that the Chinese Central Bank (BPoC) continues to intervene on the Chinese interbank market to avoid any liquidity crisis. This is a strengthening factor of the yuan (USD/CNY) and this has a bullish effect on the AUD/USD and NZD/USD rates.