The offshore yuan traded around 7.17 per dollar on Monday, holding a three-session winning streak from last week, supported by better-than-expected trade data. China’s trade surplus widened to USD 114.77 billion in June 2025, beating forecasts as exports rose 5.8% year-on-year, driven by front-loaded shipments ahead of August tariff deadlines. Imports also grew 1.1%, below expectations but marking the first annual increase this year, suggesting a modest recovery in domestic demand. Meanwhile, global trade tensions remained in focus after the US confirmed a 30% tariff on EU and Mexican imports, effective August 1. In response, EU and Mexican officials expressed willingness to negotiate, and the EU began talks with other affected partners. The yuan also found medium-term support from news that China and ASEAN will submit their upgraded free trade agreement for approval in October. Investors now await China’s Q2 GDP data due Tuesday, with growth expected to slow to 5.2% from 5.4% in Q1.