Scott Morrison has congratulated the US and China in what appears to be a breakthrough in the long running trade war between the two countries.
"We welcome what has been somewhat of a breakthrough," the prime minister told reporters in Suva on Saturday during his whistlestop visit to Fiji.
"I have been encouraging both the United States and China to, you know, get on and get this done."
The US and China have agreed to the first phase of a trade deal covering agricultural purchases, currency and some aspects of intellectual property protections.
The US has also agreed not to proceed with around $250 billion in tariffs on Chinese goods that were supposed to have come into effect on Tuesday.
US President Donald Trump said there is still more to negotiate but he hopes the deal can be concluded when world leaders meet for the APEC meeting in mid-November.
"I commend both China and the United States on where they've got to," Mr Morrison said.
"Let's just hope that that is consolidated. And then once phase one is put in place, well, I wish them well for phase two."
Labor frontbencher Andrew Leigh wasn't getting too carried away by these developments.
"I think it's too early to be sure where this is headed," Dr Leigh told reporters in Canberra.
"It is in no one's interest to have trade wars ... we rely heavily on the world trading system."
US stocks rallied on the news of the trade breakthrough but finished below the days highs on Friday amid worries over potential glitches in the agreement.
Still, its major stock markets ended over over one per cent higher.
It should mean a firm start for the Australian market on Monday, with the stock futures market 65 points higher.
Analysts at TD Securities said the initial deal helps to avoid the imposition of tariffs next week and signals a willingness by both parties to prevent further escalation in the short-term.
But their enthusiasm is tempered by the fact the details are yet to be finalised -meaning trade uncertainty will linger - structural issues are still to be resolved and tariff hikes pencilled in for December remain on the table.
Expectations for further interest rate cuts by the US Federal Reserve were also wound back on the tentative trade deal.
"We think the market may have become too optimistic on the deal. We continue to expect the Fed to cut 25 basis points in October and three more cuts in 2020," the TD Securities analysts said in a note to clients.