President Donald Trump said he would delay an increase in U.S. tariffs on Chinese goods thanks to "productive" trade talks and that he and Chinese President Xi Jinping would meet to seal a deal if progress continued.

The announcement was the clearest sign yet that China and the United States are closing in on a deal to end a months-long trade war that has slowed global growth and disrupted markets.

Trump had planned to raise tariffs to 25% from 10% on USD 200 billion worth of Chinese imports into the United States if an agreement between the world's two largest economies were not reached by Friday.

After a week of talks that extended into the weekend, Trump said those tariffs would not go up for now. In a tweet, he said progress had been made in divisive areas including intellectual property protection, technology transfers, agriculture, services and currency.

The president did not set a new deadline for the talks to conclude, but he told U.S. state governors gathered at the White House that there could be "very big news over the next week or two" if all went well in the negotiations. The White House did not provide specific details on the kind of progress that had been made.

The Chinese government's top diplomat, State Councillor Wang Yi, told a forum in Beijing on Monday that the talks had made "substantive progress", providing positive expectations for the stability of bilateral ties and global economic development, China's Foreign Ministry said. China's official Xinhua news agency said in a commentary that the goal of an agreement was getting "closer and closer", but also warned that negotiations would get more difficult as they approached the final stages.

Commodity-linked currencies gained on Monday after U.S. President Donald Trump confirmed he would delay a planned hike in tariffs on Chinese imports.

The Australian dollar, seen as a proxy for China risk because of Australia's dependence on Chinese demand for its exports is up by more than 0.7% today. The pair broke 7-day exponential moving average (at 0.7138) today. Daily RSI is biased up and a long lower wick is in place on February's candle. The next resistance level is February 21 high at 0.7207. We remain long.

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