SHANGHAI: China’s yuan softened against a steady US dollar on Wednesday, trading in tight ranges as investors awaited key trade data and monitored Sino-US trade developments for direction.
President Donald Trump said on Tuesday the US was close to a trade deal with China and that he would meet his Chinese counterpart Xi Jinping before the end of the year if an agreement was struck.
“If the US-China tariff truce is to be extended, China and rest of the world tariff differential will likely narrow after the modified reciprocal tariffs on other economies become effective,” Citi analysts said in a note.
Investors are awaiting China’s July trade data due on Thursday for signs of how US tariffs may be impacting exports, with Citi economists forecasting an 8% rise in outbound shipments and a 1% contraction in imports.