US President Donald Trump and Chinese President Xi Jinping have agreed to hold a truce between the two countries and stop imposing additional tariffs following their meeting on the sidelines of the Group of 20 meetings in Argentina. Officials in both countries will continue negotiations within 90 days and if no agreement is reached, US tariffs will rise from 10% to 25%.
OPEC representatives will meet in Vienna this week amid expectations that they will cut production levels to curb global supply increases, amid news that Qatar is withdrawing from OPEC to focus on the natural gas industry. Qatar is the world's largest exporter of liquefied natural gas.
In the United States, Federal Reserve Chairman Jerome Powell is due to testify on economic outlook before the Joint Economic Committee of Congress, and markets will await Powell's testimony following recent statements that pushed the dollar lower.
Also, US employment data will be released in the non-farm sector. The US economy is expected to add 200,000 jobs in November after adding 250,000 jobs in October. The average wage will rise by 0.3% after rising by 0.2%, while unemployment is expected to stabilize at 3.7%.
The Reserve Bank of Australia will announce its interest rate decision on Tuesday morning and is expected to keep it unchanged at 1.50% which the bank hold it for more than two years. Australia's growth data will also be released, and GDP is expected to slow to 0.6% in the third quarter of 2018 on a quarterly basis and to 3.3% year-on-year.
In Canada, the central bank is expected to keep interest rates unchanged at 1.75%, which it raised last October with a positive tone on the Canadian economy. Canadian economic data as well as the signing of the new agreement with the US and Mexico support the Bank of Canada positive tone.
Also, there will be an appointment with Mark Carney, Governor of the Bank of England before the Treasury Committee and three of his deputies to talk about the Brexit agreement.
