ForexLive Asia-Pacific FX news wrap: Trump delays 50% EU tariff date from June 1 to July 9

• FX option expiries for 26 May 10am New York cut
• China mulling new economic policy tools says Chinese Premier Li Qiang
• Goldman Sachs: Chinese stocks are likely to gain further support from a strengthening yuan
• Citi 0 – 3 month price target for gold back to $3,500/oz
• Fed’s Kashkari – Uncertainty top of mind for Fed, US businesses
• US Senator says there are enough NO votes to block Trump’s “One Big, Beautiful Bill”
• China criticises Australia’s effort to return Darwin port to local ownership
• USD appears friendless in Asia trade (except for the PBoC propping it up!)
• Offshore yuan is hitting its highest since early November last year
• China property: Country Garden seeks extension for US$14.1 billion debt overhaul
• PBOC sets USD/ CNY reference rate for today at 7.1833 (vs. estimate at 7.1737)
• Trump’s tariff threat then backdown cycle – market sees “boy who cried wolf”
• Reminder – UK and US holidays today, Monday, May 26, 2025 – markets closed
• Weekend – Japan PM aims for a trade deal with US by mid-June
• Weekend: Bank of Canada Governor Macklem said Trump’s tariffs the “biggest headwind”
• Reserve Bank of New Zealand Shadow Board recommends 25bp interest rate cut this week
• Rally for US stocks on Trump extending start date on 50% EU tariff
• Trump agreed to extend EU tariff deadline to July 9, usd/yen pops, EUR a little pop too
• Trump says had some good talks with Iran, says had some real progress
• Stand by for Globex opening at the top of the hour
• Update – Iran and US wrapped up a fifth round of nuclear talks – “constructive”
• US may no longer offer reliable investment, capital may pivot to more stable jurisdictions
• Economic calendar in Asia Monday, May 26, 2025 – a very quiet one
• Trade ideas thread – Monday, 26 May, insightful charts, technical analysis, ideas
• EU’s Von der Leyen spoke with Trump, said EU needs time until July 9 to reach a good deal
• Federal Reserve Chair Powell spoke Sunday, didn’t comment on his economic, policy outlook
• Monday open levels, indicative FX prices, 26 May 2025
• FMAS 2025: Who wants to meet up in Cape Town next week?
• Newsquawk Week Ahead: Nvidia earnings, FOMC Minutes, US PCE, RBNZ, Aussie CPI, OPEC JMMC
• Forexlive Americas FX news wrap 23 May: Pres. Trump is not partial to who he tariffs

The
USD lost ground
during the session here against
EUR, AUD (highest since December 2, 2024), GBP (highest since
February of 2022), NZD and CAD. USD/JPY and USD/CHF are not a lot net
changed. Yen and CHF crosses are thus higher.

There
were a couple of impactful early items of news:

• the
  readouts from both Iran and the US were positive on nuclear talks,
  and indeed Trump confirmed this in later remarks saying the US had
  very good talks with Iran. “We had some real progress”.
• European
  Commission President Ursula von der Leyen spoke in a call with Trump
  on Sunday. Trump agreed to delay tariffs on the EU until July 9, a
  reprieve from the threatened 50% levies set to go into effect on June
  1

That
second point was the more impactful, it weighed on the dollar and
underpinned risk (see above FX comments) for the session. While US
markets will be closed on Monday for the Memorial Day holiday US
equity index futures traded on Sunday evening on the CME’s Globex,
rising on this news.

Also
rising today was the yuan. Offshore yuan, CNH, hit its strongest
since early November of 2024. In its reference rate setting today the
People’s Bank of China flipped its damping around to slow the
yuan’s rise (or support the USD if you’d prefer that
perspective!). A rising yuan is supportive for AUD (at the margin it
decreases the cost of Australian products in China).

This article was written by Eamonn Sheridan at www.forexlive.com.