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Chinese Yuan rebounds
On Tuesday, the Chinese Yuan managed to rebound in Asia reacting to reports that the Asian country’s state-backed funds, dubbed the “National Team,” have pumped cash into the market in an attempt to back local stocks as well as currency.
The currency pair USD/CNY headed south by about 0.1% being worth 6.8712. Referring to unnamed sources, the Hong Kong Economic Times informed that China’s National Team intervened and also injected money into the financial markets, although the report didn’t offer any further details. In fact, the news spurred investor sentiment. As a result, Chinese shares tacked on immediately reacting to the report, before returning to the red shortly after.
The major Chinese currency headed south to four-month minimums versus the evergreen buck overnight after the Chinese cabinet announced on Monday it was lifting levies on $60 billion of American products from June 1.
The move occurred several days after the US government dared to escalate the trade tensions with another tariff lift on $200 billion of Chinese exports on Friday. American leader told that China is going to be heavily affected if this Asian country fails to make a deal with the United States. He added that many US companies will have to abandon China in favor of other countries.
Steven Mnuchin added that the two leading economies are still negotiating their trading issues. Donald Trump stressed that in that long-lasting trade conflict his country has a sort of advantage because the American economy is currently in good shape.
Besides this, US President told that he’s going to meet his Chinese rival Xi Jinping in Japan at next month’s G-20 summit.
AUD/USD and NZD/USD rallied respectively 0.2% and 0.3%.
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Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.