WH advisor Larry Kudlow on trade wars: Phase 1 'unresolved issues' could spill over to phase 2

• Kudlow says, "No update on China talks; moving ahead with phase-1."
• Trade-war headlines domination the US Dollar, Yen, AUD and Yuan.

White House economic advisor Larry Kudlow has crossed the wires saying that phase-1's unresolved issues could spill over into phase-2. He said this in respect to the recent gentleman's handshake deal between the US administration and China over trade – A Phase-1 trade deal that had not been officially signed into a contract and thus leaving the door wide-open for it to be revoked by either side.

However, it is a form of progress and a deal which Trump has been vocal of recent days, saying how well talks have been going and how confident he is that a deal will be signed as soon as next month to open the way for further negotiations in phase-2 deal. Stocks were solid yesterday of prior comments from Kudlow suggesting December tariffs could be removed of all goes well

Additional comments from Kudlow

• No update on china talks; moving ahead with phase one.
• December tariffs could be removed if US/China trade talks go well – (Comment made on 21st Oc 2019).

FX implications: 

The Dollar and Yen tend to sag on positive trade war headlines while the Aussie generally firms on good news headlines, which trades as a proxy to the noise, as does the Yuan.