US Dollar Slips as Soft Economic Data Eases Fed Rate Hike Expectations 
Australian Consumer Sentiment Jumps 6% in August as Rate Outlook Improves 
US Stock Futures Mixed as Fed Rate Hike Bets Fade, AI Deals in Focus 
Wall Street Falls as Oil Prices Rise, Fed Minutes and Retail Earnings in Focus 
Yen Edges Higher as Weak US Data Dampens Fed Rate Hike Expectations 
Gold Prices Rise as Weak US Data and Hormuz Risks Boost Safe-Haven Demand 
Trump Imposes New Tariffs on Drone Imports Over US Security Concerns 
Japan Economy Grows 1.1% in Q2 as Consumer Spending Stalls 
Canada Faces 50% U.S. Tariffs as Trade Tensions Threaten USMCA Talks 
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The Chinese yuan is expected to remain relatively steady in Q2 while trading along with a broader market tone in the months ahead. On the other hand, as the credit-fuelled growth could raise risks to the real economy down the road, the yuan is expected to face some headwinds in H2.
The United States Treasury Department has chosen not to brand China a currency manipulator in an official semiannual FX report released last Friday, even though it still kept China on a previously established “Monitoring List.”
Premier Li Keqiang said Tuesday that market confidence in the yuan currency has significantly improved and the nation will keep yuan basically stable at a reasonable and balanced level. The State Council, China’s cabinet, said Wednesday in a statement that the nation should make more forceful adjustments to fiscal and monetary policies if new urban jobs fell sharply and the unemployment rate rises significantly.
"Meanwhile, we note the PBoC has persistently set USD/CNY fixing with a downward bias in the past week. It means the central bank’s daily reference rate will slide markedly if the DXY Index tumbles overnight. In addition, China is on track to reach its economic growth target for 2017 due to booming credit supply," Scotiabank commented in its latest research report.
