FX.co ★ Offshore Yuan Retreats After Trump-Xi Meeting

The offshore yuan experienced a decline, settling around 7.10 per dollar on Thursday. This drop comes after reaching a near one-year high in the previous session. Investors felt a sense of disappointment following the meeting between President Trump and President Xi. This marked their first meeting since Trump resumed office, where the two leaders concurred to extend the temporary trade truce for another year. The United States agreed to halt the "50% rule" on export controls, while China agreed to lift restrictions on rare earth exports. Other pivotal aspects of the meeting included a mutual commitment to tackling issues such as fentanyl control and enhancing agricultural trade, along with a positive dialogue concerning TikTok-related matters. However, despite the optimistic tone in China's summary of the meeting, the lack of detailed specifics suggested that further refinement and finalization of agreements are necessary. Domestically, attention is now on the forthcoming PMI data, with official figures expected this week, followed by private sector surveys.