As it stands, the USD/CNY is trading around the 6.75 mark, seemingly on its way to the 7.00 handle last seen in January 2017. The yuan has fallen 6 percent against the greenback over the past month. Across the Tasman, investors will be watching Australian consumer confidence.
The greenback reversed some of its losses from Friday, when Trump criticized China and the European Union in a tweet, accusing them of "manipulating their currencies and interest rates lower". FxWirePro's Hourly Dollar Strength Index stood at -63.16 (Bearish) by 1000 GMT. Onshore, the redback jumped 0.13 percentage point to 6.8218 at 3 p.m from the morning. Immediate resistance is located at 1.1762 (June 10 High), a break above targets 1.1801 (June 13 High).
USD/JPY: The dollar slumped to a 2-week low against the Japanese yen following reports the Bank of Japan was debating moves to scale back its massive monetary stimulus.
The council also vowed to maintain appropriate credit growth under prudent monetary policy. The Reuters report and the dollar's weakness together added to the yen's strength, which was last up 0.4 per cent at 111 per dollar.
"At the moment, we don't know what kind of pressure or comments could come from the USA side", said Osamu Takashima, head of G10 FX strategy, Japan at Citigroup Global Markets Japan.
"The dollar/yen has broken below its trend line support at around 110.40".
Fed officials, including Chairman Jerome Powell, have raised interest rates twice this year and have indicated two more are coming before the end of 2018.
Trump's threats to slap duties on all $500 billion of US imports from China triggered selloffs across global stock markets.
European auto shares, sensitive to trade tensions as USA officials work towards slapping tariffs on vehicle imports, fell 2.1 percent.
Asia-Pacific session traders have once again turned their focus to rising trade tensions, and fears of a potential global slowdown on too many tariffs are beginning to simmer.
Germany's DAX fell 0.2 percent at 12,535.71 points; France's CAC 40 trades 0.5 percent lower at 5,371.24 points. -China trade tensions and supply increases meant oil prices saw their third weekly loss. Brent eased 17 cents to $72.90. United States crude was last off 14 cents at $68.12 a barrel after posting its third straight weekly loss.
Spot gold XAU= dropped 0.6 percent to $1,224.31 an ounce.
China's ministry of commerce stated that it was shocked by Trump's threats and that it would file a complaint with the World Trade Organization and, while it did not immediately say how it would respond, the ministry called Trump's threats completely unacceptable.
Benchmark 10-year Japanese Government Bond futures opened weaker on Monday, sending yields to six-month highs. "Ahead of the BOJ's policy meeting next week, the dollar/yen is likely to test lower", said Shuntaro Ikeshima, chief manager of forex and financial products trading division at Mitsubishi UFJ Trust and Banking Corp.
Silver was down 0.4 percent at $15.41 an ounce after last week's drop to its lowest since July a year ago.
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