USD/CNY falls below 6.80 as China’s trade surplus surges to $84.82bn in April, bolstering the currency.
The Chinese yuan strengthened to its highest level since February 2023, trading below 6.80 against the USD ahead of this week’s US-China summit. Analysts cite safe-haven demand and robust trade data as key drivers, with April’s trade surplus reaching $84.82bn on a 14.1% year-over-year export increase.
The currency’s outperformance in emerging Asia reflects China’s growing role as a geopolitical safe haven amid global uncertainty. However, expectations for the summit remain muted, with a scaled-down delegation and internal policy divisions limiting potential outcomes.
Discussions are expected to focus on trade discipline and incremental confidence-building measures, rather than major deal announcements. Both sides may address technology export controls and rare earth exports, though substantive policy shifts appear unlikely.