Strong resistance can be seen at 109.49 (Daily High), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.00 (5 DMA), a break below could take the pair towards 108.77 (11 DMA).
The announcement has fanned hopes that the world's economic superpowers - who are now finalising a mini trade pact as part of a wider deal - can resolve their long-running tariffs war that has hobbled the global growth outlook.
But dealers were unable to carry the baton further in Asia after the White House failed to comment on the Chinese claims, while a report said there was some opposition within the administration to such a move.
"Global markets in general are looking toward where trade goes", said Justin Lederer, an interest rates strategist at Cantor Fitzgerald in NY.
He cautioned, however, "as we have been here before, only to find that both sides have stepped back due to concerns that they may be perceived as having given too much away".
On Friday, U.S. President Donald Trump reinforced the sentiment, telling reporters he has not agreed to the rollback of tariffs sought by China and that Beijing wanted to make a deal more than he did.
Muddying the waters further, White House spokeswoman Stephanie Grisham told Fox News Channel on Thursday that the United States is "very, very optimistic" about reaching a trade deal with China soon.
The prospect of a recession diminishes if some tariffs are removed, said Peter Cardillo, chief market economist at Spartan Capital Securities in NY.
Neil Wilson, chief market analyst at Markets.com, said: "If a first phase trade deal is done, there is agreement to roll back some existing tariffs, but only if the deal is agreed. Usual story - mixed reports really all just noise".
The Dow Jones Industrial Average fell 52.81 points, or 0.19%, to 27,621.99 and the S&P 500 lost 0.61 points, or 0.02%, to 3,084.57.
Shanghai gave up 0.5 percent after data showed Chinese exports and imports fell again last month, though not as quickly as expected.
NEW YORK, Nov 8 (Reuters) - Oil prices faltered and global equity markets slid on Friday, halting a week-long record-setting rally on hopes a U.S. "China trade negotiations, specifically whether or not a phase one trade deal. would include a reduction of existing tariffs", said Brian Daingerfield, head of G10 FX strategy, at Natwest Markets in Stamford, Connecticut.
Worries the pact could fall apart are now prompting some investors to sell heading into the weekend.
"The trade war started with tariffs, and should end with the cancellation of tariffs", Gao said at a news briefing.
Stocks on Wall Street were mixed as uncertainty about a deal capped a record run for US equities.
Sovereign bond markets steadied after taking a beating this week from US-China trade talk optimism.
The U.S. 10-year Treasury yield stood at 1.92%, down from three-month highs hit on Thursday. The yuan was set for its sixth straight weekly gain.
Safe-haven German Bund yields were also set for their biggest weekly rise in a month.
Prices earlier fell to their lowest since August 5 at $1,455.80.USA gold futures fell 0.5% to $1,459.70.
US West Texas Intermediate (WTI) crude CLc1 was down 56 cents, or 0.9 per cent, at $US61.73 a barrel.
Moves in the currency market were restrained.
Versus the dollar, the yen was near a five-month low and against the Australian dollar the Japanese currency was close to a 15-week low.
The U.S. dollar index, which measures the greenback's strength against a basket of six major currencies, jumped 0.2% to 97.930 as of 10:28 AM ET (14:28 GMT).