Chang Wei Liang at DBS Group Research highlights that USD/CNH is easing toward 6.70 despite a stronger Dollar, with the Renminbi (RMB) supported by a lower USD/CNY fixing below 6.76. He links this to possible goodwill from China ahead of the Trump–Xi summit and expects RMB to strengthen further into next Thursday’s meeting as markets hope for an extended US–China trade truce.

USD/CNH drift and Trump–Xi summit

“USD/CNH has been easing gradually towards 6.70 in defiance of a stronger USD.”

“The stronger RMB is supported by a steady decline in the USD/CNY fixing to below 6.76 yesterday, which is perhaps a goodwill gesture from China ahead of the Trump-Xi summit in Washington next week.”

“The US is also reportedly holding back a planned announcement of new tariffs related to alleged excess manufacturing capacity, at least until next week’s summit.”

“With the leaders set to discuss wide-ranging issues related to trade, Iran and AI, markets could hope for an extension of the US-China trade truce beyond November.”

“We expect Renminbi (RMB) to strengthen further into the Trump-Xi summit next Thursday.”