The US dollar weakened against the euro, Chinese yuan, and Australian dollar as optimism grew about a potential US-China trade deal.

President Trump expressed confidence that a trade agreement with China would be reached during his upcoming meeting with President Xi Jinping in South Korea.

The big picture: Global stock markets rallied on hopes of easing trade tensions, new trade frameworks with East Asian countries, and a positive election outcome in Argentina favoring President Javier Milei. • The Chinese yuan strengthened after the People’s Bank of China set a higher midpoint rate, signaling goodwill ahead of Trump’s meeting with Xi or a push to boost domestic demand. • The Australian dollar gained on hawkish comments from the Reserve Bank of Australia, which indicated inflation da

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