Offshore Yuan Retreats Ahead of Trade Data

The offshore yuan edged lower to below 7.13 per dollar on Monday, giving back gains from the previous session, as investors turned cautious ahead of upcoming trade balance data. Markets expect China’s export growth to have slowed in August, pressured by weaker shipments to the US as the temporary boost from a tariff truce fades. A high base from last year and threat of steeper US duties on rerouted goods also weighed on momentum. Imports are projected to rise 3%, down from July’s 4.1%, reflecting weak domestic demand amid a property downturn, job insecurity, and tighter stimulus support. The trade surplus is forecast at $99.2 billion, just above July’s $98.2 billion but well below June’s $114.7 billion. With container ship departures to the US down nearly 25% in late August, exporters face mounting pressure, while analysts warn policymakers may need fresh support. Separately, China is reopening its bond market to Russian energy firms via panda bonds, signaling closer ties with Moscow.