USD descended to its one-month low on Thursday, continuing the downward trend after the Fed commented that the job market still needed some time to fully recover. Aside from the decision to wait longer regarding the monetary stimulus, the US Q2 GDP has also exerted some pressure over the currency. In Q2, GDP increased by 6.5% on an annualized base, well below the 8.5% forecast. After the data being released. US Treasury yields also trended lower, further weighing on the USD.
On the other hand, Reuters polls show that CNY bears have returned as more investors betting bearish. Since April, Chinese regulators have been cracking down on several tech giants across various sectors, including education and real estate, sparking uncertainty investments in the country. Over the week, CNY has slipped below the 6.50 level with stocks sliding more than 4%.