Most Asian currencies traded in a narrow range on Monday, with the U.S. dollar slightly softer amid renewed U.S.–China trade uncertainty and dovish signals from Fed Governor Christopher Waller.

USD Under Pressure on Rate-Cut Hints

Fed Governor Waller said he remains open to cutting interest rates later this year if economic conditions warrant, nudging the dollar lower.

Weak Chinese PMI data (released over the weekend) also chipped away at regional risk sentiment, even though mainland markets were closed for a holiday, limiting volume.

To monitor these economic releases and Fed commentary, use the Economics Calendar API, which flags PMI prints, Fed speeches, and tariff-related announcements.

Yen Strengthens as Safe Haven

USD/JPY fell 0.1%, driven by cautious positioning ahead of high-level trade talks between Tokyo and Washington.

Heightened risk aversion—spurred by Trump’s threat to double steel and aluminum tariffs to 50%—drew flows into the Japanese yen, a traditional safe-haven currency.

Real-time FX rates and intraday moves for JPY and other majors can be tracked via the Forex Daily API, which provides updated cross-currency pairs and volume data.

Yuan Weakness Amid Tariff Spat

While onshore markets were closed, the offshore yuan (USD/CNH) rose 0.2%, reflecting underlying yuan weakness as traders assessed fresh trade tensions.

China firmly rejected Trump’s weekend claims that it violated the Geneva trade deal, deepening the rhetoric even though both sides agreed to cut tariffs drastically in May.

Ongoing disputes—U.S. chip controls versus China’s rare-earth export restrictions—continue to fuel volatility in the yuan.

Key Takeaways for Investors

Trade Talks in Focus: Keep an eye on upcoming U.S.–Japan and U.S.–China meetings. Any progress could alleviate risk-off flows and lift Asian FX.

Fed Rate Outlook: Further dovish Fed signals may keep the dollar under pressure, providing room for Asian currencies to firm.

PMI and PMI-Adjacent Data: A repeat of weak PMI readings would exacerbate pro-cyclical pressure and boost safe havens like the yen.