Global Themes

USDCNY plunges as shares bounce back on trade talks

The US dollar reversed recent gains with a sharp rebound in global shares boosting optimism.

Key sharemarkets were higher yesterday on news the US and China would resume trade talks later this month.

CNY gains

The most significant move was in the Chinese yuan with currency jumping from one-year lows versus the US dollar.

The USDCNY fell 1.3%.

The Euro was higher as sentiment improved, while the Japanese yen and Swiss franc, key safe haven currencies, both fell.

European CPI

In Australia, a key speech from Reserve Bank of Australia will be closely watched with the Australian central bank unlikely to hike rates for the next 18 months.

From Europe, inflation numbers will be key as the euro’s recent losses push the currency to one-year lows.

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