Chinese policymakers are considering a weaker Yuan as Trump trade risks loom

Lallalit Srijandorn FXStreet

On Wednesday, China’s top leaders and policymakers are considering letting the Chinese Yuan fall to weather what is likely to be a sharp hike in tariffs, per Reuters. The yuan immediately dipped against the USD, along with currencies across Asia which are highly sensitive to Chinese demand.

Trump has said he plans to impose a 10% universal import tariff and a 60% tariff on Chinese imports into the United States.

Market reaction

At the time of writing, the AUD/USD pair is trading 0.24% higher on the day to trade at 0.6386.

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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