Analysts at TD Securities note that following China's increased purchases of US agricultural goods, US tariff delays and President Trump noting that a deal "could happen sooner than you think", hopes of progress during a fresh round of trade talks between senior US and Chinese officials in Washington were growing.

“While the incentive for both sides to get a deal done is intensifying given rising economic pressures on both countries, reports early in Asian trade cast doubt on whether any progress is likely. It began with the South China Morning Post reporting no advances in deputy level trade talks, that would see the Chinese delegation leave the US later today instead of Friday. However these remarks were contradicted first by CBNC, reporting that the South China Morning Post comments were inaccurate. Bloomberg also confirmed China’s Lie He would remain in Washington through to Friday. To add to this confusion, Fox news cited Chinese ‘trade sources’ that its Country’s team will leave on Thursday, but reports emerged the US was considering a currency pact with China as part of a partial deal. Earlier Trump signed off on licenses for some US companies to do business with Huawei.”