USD/CNY: Yuan sell-off stalls after the firmer PBOC fix

USD/CNY: Yuan sell-off stalls after the firmer PBOC fix

USD/CNY: Yuan sell-off stalls after the firmer PBOC fix

The currency then reversed earlier losses to move back into positive territory for the day against the dollar.

"It is by far the biggest (yuan loss) I can remember".

"It's not clear yet if the trade row will derail the global economy as a whole but it's already clear that it will harm Chinese companies at least", said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank.

The dollar bull continues to run over one weak currency after another, so after the holiday-shortened week inspired USD correction lower, given that near-term long dollar positions are a bit cleaner, what's the next currency that falls under the greenback's crosshairs?

Other Asian currencies weakened, especially those such as the Indonesian rupiah that are doubly exposed - to trade and oil prices approaching $80 a barrel.

The Hong Kong stock market on Tuesday wrote a finish to the two-day winning streak in which it had advanced nearly 600 points or 2.1 percent.

DBS estimates that an all-out trade war, defined as the imposition of tariffs of 15 to 25 per cent on all products that are traded between China and the U.S., could shave 0.25 per cent of GDP off both economies' output this year, while the damage would be far greater in 2019. Japan's Nikkei .N225 edged to a near three-month closing low.

For the day, the index plummeted 409.54 points or 1.41 percent to finish at 28,545.57.

Heat wave kills 19 in Canada
Hobelman said. "So, at least a bit of a break from this intense heat that we've been experiencing". The highest July 1 temperature recorded in Ottawa between 1939 and 2011 was 36.9 C in 1963.

"The agreement between Chancellor Merkel and German interior minister Horst Seehofer should see German political risk fade into the background as a downside risk for the euro in the near-term", MUFG analysts told clients.

Support: 6.6263 (session high), 6.6046 (previous day's low), 6.60 (psychological support). Gains of around 1 percent in tech firms such as Microsoft and Apple offset concerns about trade and its impact on growth. They are seen delivering another set of robust quarterly earnings.

That helped MSCI's world index to rise 0.25 percent, inching further off 2-1/2 month lows hit last week.

China is not using yuan depreciation as a tool in its trade conflict with the USA, and will likely step in to avert any disorderly decline, according to Morgan Stanley.

Currency moves were largely limited, however, with a public USA holiday in the United States discouraging traders from taking out big positions, not least until there is some clarity about where an escalating trade dispute between the US and China is headed and whether Europe will be dragged in.

Software shares posted strong performance, with Yuanguang Software Information Co., Ltd rising 3.56 percent to close at 8.72 yuan.

The Reserve Bank of Australia (RBA) kept rates at record lows of 1.5 percent, as widely expected, at its monthly policy meeting on Tuesday and showed no hint of hiking anytime soon. Its governor cited "the direction of worldwide trade policy in the United States" as an uncertainty.

The benchmark share index in Shanghai, which entered a bear market last week, is trading near its lowest level in more than two years.

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