China’s ‘Lipstick King’ Says AI Won’t Replace Livestream Hosts 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Dollar Hits Two-Month High as Fed Rate Hike Bets Rise 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Wall Street Falls as Treasury Yields Surge, Oil Rebounds on Iran Tensions 
Gold Drops Over 1% as Dollar, Treasury Yields Surge on Fed Rate Hike Bets 
US Dollar Hits Two-Month High as Fed Rate Hike Bets Rise 
US Stock Futures Rise as Meta Muse Fuels AI Rally 
Best Gold Stocks to Buy Now: AABB, GOLD, GDX 
South Korea, US Discuss Warship Building Cooperation 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Oil Prices Surge as U.S.-Iran Diplomacy Hopes Fade 
Add as a preferred source on Google
The USD/CNY currency pair is expected to trade in a range of 6.7-6.9 amid renewing portfolio inflows ahead of the July FOMC meeting, with a downward bias, according to the latest research report from Scotiabank.
Further, the pair would reach the 6.4 level seen last June should the US and China reach a trade deal finally, in response to both further improving risk sentiment and potential demand from the US side in exchange for the US lifting all the additional tariffs.
"We allocate a 70 percent probability for this scenario. On the other side, the pair will surge to the 7.0 mark under the acquiescence of the PBoC, if the renewed trade negotiations fall apart at last, with a 30 percent chance," the report commented.
US President Donald Trump and Chinese President Xi Jinping held their highly anticipated bilateral meeting at the G-20 Osaka Summit on Saturday. Earlier Saturday, President Trump said at the outset of a bilateral meeting with Saudi Crown Prince Mohammad Bin Salman that he had already met with President Xi on Friday night and "a lot was accomplished actually last night."
In addition, Chinese President Xi Jinping on Friday announced five major policies that will further open up the Chinese market while improving the nation’s business environment.
The announcements include:
1) opening markets with the release of an updated negative list for 2019; 2) expanding imports with lowering tariffs and removing nontariff trade barriers; 3) improving business environment with a Foreign Investment Law to be enacted at the beginning of 2020; 4) treating foreign companies equally with a complain system to be established and; 5) pushing forward trade talks.
Generally speaking, risk-on sentiment will continue in general ahead of the July 30-31 FOMC meeting, undermining the dollar against EM Asian currencies.
Meanwhile, risk aversion could resurface from time to time post the July 30-31 Fed gathering as 1) it is not easy for the US and China to reach a comprehensive trade deal and; 2) the Fed may turn less dovish than the market has discounted, particularly if US macro data improve. The Fed Funds Futures have lowered the odds of Fed rate cuts at the coming FOMC meetings, Scotiabank further noted.
