USD/CNY: China exports to US drop 9.9% as trade tensions ease

USD/CNY trading remains subdued as China reports a 9.9% year-over-year decline in yuan-denominated exports to the US for January-June, with imports from the US falling 7.7%. The overall bilateral trade decreased 9.3% year-over-year, reflecting ongoing trade readjustments between the world's two largest economies. Despite the negative figures, Chinese officials highlighted signs of recovery in recent trade data and emphasized accelerating implementation of the London framework results. The spokesperson's comments that 'dialogue and cooperation are the right path' suggest a more constructive approach to trade relations, potentially easing pressure on the yuan. Market participants are monitoring whether improved diplomatic relations could offset the current trade deficit concerns. Technical traders should watch key USD/CNY levels around 7.25-7.30 as the pair consolidates, with potential yuan strength if trade recovery gains momentum.