USD/CNH eyes volatility as Trump hints at new US-China trade deal

USD/CNH trades cautiously near 7.3250 as markets digest Trump's comments about a potential 'great deal' between the US and China. The former president's remarks suggest a continuation of the existing trade truce established in May, though details remain scarce. Market participants express skepticism, drawing parallels to the failed Phase One trade agreement of 2018-19 that quickly unraveled after implementation. The Chinese yuan has shown resilience against the dollar despite ongoing geopolitical uncertainties, with traders monitoring any concrete policy announcements. Technical indicators show USD/CNH consolidating within a 7.30-7.35 range, with resistance at 7.3500 and support at 7.3000. The lack of specifics in Trump's statement has kept volatility subdued, though any formal trade negotiations could trigger significant price movements. Traders should watch for official statements from both governments that could impact risk sentiment and emerging market currencies.