MNI BRIEF: US Labor Costs Increase 0.9%, Below Expectations

MNI BRIEF: ADP's Richardson Sees Normalizing US Labor Market

CANADA FLASH Q2 GDP ANNUALIZED +2.2%

MNI China Daily Summary: Wednesday, July 31

MNI: PBOC Net Injects CNY185.57 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1346 Weds; -1.39% Y/Y

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

US EIA: CRUDE OIL STOCKS EX SPR -3.44M TO 433.0M JUL 26 WK

MNI: US NAR JUN PENDING HOME SALES INDEX 74.3 V 70.9 IN MAY

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Offshore Yuan Gains, China's Inflation Figures Miss Expectations

CNH

Spot USD/CNH took a dip after the release of China's inflation data, with both main indices missing expectations. Consumer price growth slowed to 1.5% Y/Y in December, while factory gate inflation eased to +10.3%, leaving policymakers more space to implement pro-growth initiatives.

  • Note that the PBOC earlier set their yuan reference rate at CNY6.3658, 13 pips below sell-side estimate, but the release of inflation data clearly took precedence.
  • Spot USD/CNH trades -60 pips at CNH6.3714 as we type, printing its worst levels in a week. Further losses past Jan 5 low of CNH6.3660 would give bears a green light for targeting Dec 31 low of CNH6.3379. Conversely, a rebound above Jan 6/Nov 26 highs of CNH6.3976/99 would give bulls some retrieve.
  • Later this week, focus will move to China's trade balance, due Friday. Headline trade surplus is expected to widen a tad.
EM BulletHomepageBulletMarketsEmerging Market NewsForeign Exchange Bullets
EM BulletHomepageBulletMarketsEmerging Market NewsForeign Exchange Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.