China Returns After Extended Holiday

Chinese markets reopen today following an extended holiday for Labor Day, participants will watch today's fix with interest after the five-day hiatus. Offshore yuan has declined for the past three sessions, touching the 100-day moving average at 6.4934 yesterday. Last USD/CNY fix was on April 30 was at 6.4672.

• Earlier speaking to the FT, US Trade Representative Katherine Tai says that the US administration will work from the 'Phase 1' agreement signed under the Trump administration in terms of trade relations with China, adding that she 'respects continuity' with regards to the deal. Says that she expects to have contact with senior Chinese officials 'in the near term'. Comes as latest data continues to show Chinese purchases from the US coming in below the levels agreed to as part of the Phase 1 deal. USTR Tai and her Chinese counterpart Vice-Premier Liu He are supposed to meet every six months under the deal, but the last meeting was in August between Liu and Tai's predecessor Robert Lighthizer.
• Some geopolitical tensions surfaced at the G7 summit, with several diplomats singling out China for human rights abuses, its treatment of Taiwan and cyber-crime. In its communique the G7 said "We encourage China, as a major power and economy with advanced technological capability, to participate constructively in the rules-based international system".