Chinese President Xi Jinping marks the 40th anniversary of Deng Xiaoping's opening of the nation's economy to the world with a keynote speech at a conference scheduled for Tuesday. Top leaders are also due to map out economic and reform plans for 2019 during an annual Central Economic Work Conference this week. It comes as Beijing's trade war with Washington spurs government advisors and think tanks to urge for urgent reforms in Asia's largest economy.
China will temporarily suspend additional 25 per cent tariffs on US-made vehicles and auto parts starting Jan. 1, 2019, the finance ministry said on Friday, following a truce in a trade war between the world's two largest economies.
In the United States, the Federal Reserve holds its final policy meeting of 2018 on Tuesday and Wednesday. The rate decision will be followed by a press conference with chairman Jerome Powell. The Federal Reserve is set to raise interest rates by 25 basis points at its Dec. 18-19 meeting and possibly indicate a trajectory for further tightening expectations, which could set the tone for currencies and other financial markets in coming months.
CURRENCY NEWS: China yuan was tad stronger against greenback on Monday, despite central bank softer mid-point rate, as traders awaited policy meetings and events at home and abroad this week. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.8908 per dollar, 158 pips or 0.23 percent weaker than the previous fix of 6.875. In the spot market, the onshore yuan opened at 6.9026 per dollar and was changing hands at 6.8975 by midday, 125 pips firmer than the previous late session close. In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2% from the central parity rate each trading day.
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