Renewed trade uncertainty and the PBOC's preference for measured yuan appreciation may temporarily temper further gains in the currency, OCBC strategists say. The yuan's reaction to media reports that the U.S. is considering a 7.5% tariff on Chinese goods may add some uncertainty ahead of next month's Trump-Xi meeting, but reaction has been limited so far. Offshore levels remain close to recent lows against the dollar, suggesting markets don't see a major trade escalation risk yet. Dollar firmness overnight could further limit appreciation. OCBC sees mild bearish momentum on the daily chart intact, but doesn't rule out a modest rebound as the RSI indicator shows tentative signs of easing selling pressure. It pegs resistance at 6.74, with support at the 6.72 and 6.70 levels. Yuan is flat at 6.7203.

Asian currencies consolidate against the dollar as traders parse the U.S.'s new measures on Iran. Treasury Secretary Bessent said the U.S. is launching what he called "Operation Economic Outcast." The targets are digital assets, technology, gold, aviation and shipping. CBA's Joseph Capurso says the U.S. campaign against Iran puts at risk the trade truce between the U.S. and China ahead of the leaders' meeting next month. The U.S. dollar is little changed at 159.13 yen and is steady at 1.2699 Singapore dollars, LSEG data show.