Offshore yuan holds ground
The offshore yuan held its recent advance around 7.12 per dollar on Tuesday, after three straight sessions of gains, supported by weakness in the US dollar.
The greenback continued to struggle as mounting concerns over a cooling labor market fueled expectations of Federal Reserve rate cuts.
Traders are now pricing in an 89% chance of a 25 bps cut at next week’s meeting, with some even positioning for a larger 50 bps reduction. Domestically, the yuan came under pressure after recent data showed China’s trade performance weakened in August, with exports slowing to six-month low and softer-than-expected imports adding pressure on growth.
Meanwhile, China is pressing ASEAN to finalize an upgraded free trade pact by year-end to boost exports and counter US tariffs, highlighting its push for greater market access and multilateral cooperation.
Looking ahead, market attention turns to key data this week, including August consumer prices, which are expected to reignite deflationary concerns.
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
Sign up for free to ask the AI about this article.
Multiples, financials, sentiment and risks in 60 seconds, with live data.