ForexLive Asia-Pacific FX news wrap: Lacklustre US-China trade talks weigh on risk FX

• Boeing urges Trump administration to ensure tariff-free treatment for airplanes
• Chinese steel production expected to decline by 4% in 2025
• BoE Executive Director for Financial Stability Strategy and Risk Benjamin speaking today
• Some European Central Bank speakers Wednesday, including Chief Economist Philip Lane
• PBOC sets USD/ CNY central rate at 7.1815 (vs. estimate at 7.1801)
• US, China trade “handshake for a framework” not generating enthusiasm in Asia trade
• U.S. appeals court allows Trump tariffs to stay in place during legal challenge
• Musk says first vehicle to drive itself from factory to customer’s home scheduled June 28
• OPEC Secretary General Haitham Al Ghais says no end in sight for oil demand growth
• Trump to block California’s EV mandates, backing auto industry pushback
• Japan data – April PPI -0.2% m/m (expected +0.2%) & +3.2% y/y (expected +3.5%)
• RBNZ (ex) governor Orr resigned abruptly over government cuts to the Bank’s funding
• Lutnick says reached a framework with China, if approved will implement Geneva agreement
• Chinese Vice Commerce Minister Li Chenggang says talks with US on trade rational, candid
• Rollover for U.S. Equity Index Futures is Monday, June 16, 2025: What You Need to Know
• Trump to sign three resolutions on Thursday canning California’s electric vehicle mandates
• Goldman Sachs expect Trump’s tariffs to lift inflation despite easing pressures elsewhere
• ICYMI: Blackstone plans to invest up to $500 billion in Europe over the next decade
• HSBC: Global stocks may rise short term (3 months), but tougher road ahead
• “China heading towards a 4.5 day work week” (2.5 day weekend) is doing the rounds again
• US Treasury Secretary Bessent says trade talks with China will continue
• Oil: private survey of inventory shows a headline crude oil draw smaller than expected
• Reports that the US and Mexico are closing in on a deal re 50% tariffs on steel imports
• US and Mexico are closing in on a steel deal that would lower tariffs to 0% – report
• US stocks close higher led by the Nasdaq
• Forexlive Americas FX news wrap: US-China talks continue, progress cited
• Trade ideas thread – Wednesday, 11 June, insightful charts, technical analysis, ideas

We
got a bit of a clue that the US-China trade talks in London were
going to have a disappointing outcome when US Treasury Secretary
Bessent left to head back to DC, leaving Commerce Secretary Lutnick
and Trade Representative to carry on.

Later
we had an announcement from the Chinese side, and then from Lutnick
and Greer. It
was not bad news, but it was underwhelming.

In
Geneva last month the US and China agreed to lower tariffs. After the
two days of talks in London Tuesday and Wednesday Lutnick said, in
his own words, that an agreement was reached on “a handshake for
a framework” to “start to implement that framework”
agreed to in Geneva, as long as both Trump, and Chinese President Xi
approve. This is not much of an announcement, in a nutshell its to
implement an already agreed upon agreement, subject to approval. Like
I said, its not bad news, and it does represent some easing in
tensions. But its only a rehash of old ground.

FX
markets responded by selling off risk FX. EUR, AUD, NZD, GBP, CAD are
all lower against the US dollar. The moves have not been large. On
the other hand, Chinese equities rose.

Further
compounding the losses for risk FX was the news that a US Federal
appeals court has ruled that Trump’s broad tariffs can remain in
effect while legal appeals continue. The appeals court said it
intends to hear arguments on July 31, which gives scope for the
tariffs to remain in effect at least until then.

From
Japan today we had PPI for May coming in weaker than expected,
slowing from April in a sign falling import costs for raw materials
were easing price pressures for firms.

We await US CPI data at 0830 US Eastern time on Wednesday.

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