USD/CNY drops as China commits to rare earth supply, agricultural purchases

USD/CNY declined 0.4% to 7.2850 following Trump's announcement of significant trade agreements with China. Beijing has committed to maintaining open flows of rare earth elements and critical minerals, essential for US technology and defense sectors. China also pledged to resume large-scale purchases of American agricultural products including soybeans and sorghum, while initiating energy procurement from US sources. A potential major transaction involving Alaskan oil and gas exports is under discussion. Additionally, China reaffirmed efforts to curb fentanyl flows into the US, addressing a key bilateral concern. These developments mark a notable de-escalation in trade tensions, supporting risk sentiment and weakening the dollar's safe-haven appeal. Technical indicators show USD/CNY breaking below the 7.30 support level, with next target at 7.2500. Continued trade progress could further pressure the pair lower, benefiting commodity currencies and risk assets.