USD/CNY dips on Trump-Xi meeting confirmation amid trade deal optimism

USD/CNY remains stable near 7.1350 following President Trump's confirmation of Thursday's meeting with Chinese President Xi Jinping. The dollar-yuan pair showed minimal reaction as markets had already priced in the news of a preliminary trade agreement reached over the weekend in Malaysia. Trump expressed optimism about the upcoming discussions, stating he believes the meeting 'will work out well.' The preliminary deal marks a potential turning point in US-China trade relations, which have weighed heavily on both currencies throughout recent months. Market participants are closely monitoring further developments, with any concrete agreement likely to strengthen risk appetite and potentially weaken the dollar's safe-haven appeal. Technical indicators suggest USD/CNY faces immediate resistance at 7.1500, while support lies at 7.1200. A successful Trump-Xi meeting could drive the pair lower toward 7.1000, reflecting improved trade dynamics and reduced geopolitical tensions between the world's two largest economies.