Forex - Yuan Slips Dollar Unchanged as Xi Promises Lower Tariffs

The yuan traded slightly lower while the dollar remained unchanged on Monday

Investing.com - The yuan traded slightly lower while the dollar remained unchanged on Monday after Chinese President Xi Jinping said at the China International Import Expo that Beijing would lower import tariffs and continue to broaden market access.

The pair was up 0.01% at 6.8931 by 12:30 AM ET (04:30 GMT). The People's Bank of China (PBOC) raised the daily yuan reference rate by 395 pips to 6.8976 from Friday's fix of 6.9371.

The that tracks the greenback against a basket of other currencies was unchanged at 96.29. The dollar was under pressure last week as growing expectations of an orderly Brexit bolstered global investor sentiment and weakened the safe-haven dollar.

Meanwhile, official data released on Friday revealed that U.S. jobs growth rebounded in October and wages recorded their largest annual gain in 9-1/2 years.

"The jobs data has reaffirmed the dollar's strength due to the rates differential factor going forward. The risk is that the markets may be caught surprised by a more hawkish Fed," said Rodrigo Catril, senior currency strategist at NAB.

Elsewhere, the pair and the pair slipped 0.1% and 0.3% respectively with weak PMI data from China continued to be cited as catalysts for selling.

The Reserve Bank of Australia is due to meet this week, although analysts believe the central bank is unlikely to make any moves on policy in the near future.

The pair was up 0.1% at 113.3. The Bank of Japan’s Kuroda said at a speech at a business leaders' meeting in Nagoya that uncertainty from overseas and impact on Japan's economy continue to rise and that the central bank is aware that continued easing policies affect financial system stability. Going forward, the BoJ would continue monitoring risks of economic destabilisation, the balance of effects and costs of its current policy.

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