Free Trial
AUSSIE BONDS

Still Grinding Cheaper

GOLD

Respecting Recent Ranges

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Offshore Yuan Looks Past Activity Indicators

CNH

Retail spending held up relatively well and the unemployment rate dropped more than expected in June, providing a sweetener to the bitter Q2 GDP report, with output growing slower than forecast. Industrial production fell roughly in line with estimates. Offshore yuan has shown little to no reaction to the data.

  • The NBS struck some downbeat tones in its commentary on the latest activity indicators. The Bureau warned that global stagflation risks have risen, the impact of COVID-19 on the economy has not been fully eliminated, while the foundation for a sustained economic recovery are not yet solid.
  • Activity data overshadowed the latest survey on new home prices, which fell 0.10% M/M nationwide. Home prices have been steadily declining since September 2021, when they registered the first monthly fall since 2015.
  • Elsewhere, the PBOC opted against injecting funds into the financial system via 1-Year MLF, keeping the interest rate applied to the operations unchanged at 2.85%.
  • The PBOC fix was marginally weaker than expected. The 7-pip deviation from analysts' median estimate was not enough to affect price action to any noticeable degree
  • Spot USD/CNH trades at CNH6.7532, down 80 pips on the day. Bears need a fall through Jun 15 low of CNH6.6669 before targeting Jun 3 low of CNH6.6170. Bulls look for a bounce above yesterday's high of CNH6.7918 before taking aim at May 13 high of CNH6.8380.
223 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Retail spending held up relatively well and the unemployment rate dropped more than expected in June, providing a sweetener to the bitter Q2 GDP report, with output growing slower than forecast. Industrial production fell roughly in line with estimates. Offshore yuan has shown little to no reaction to the data.

  • The NBS struck some downbeat tones in its commentary on the latest activity indicators. The Bureau warned that global stagflation risks have risen, the impact of COVID-19 on the economy has not been fully eliminated, while the foundation for a sustained economic recovery are not yet solid.
  • Activity data overshadowed the latest survey on new home prices, which fell 0.10% M/M nationwide. Home prices have been steadily declining since September 2021, when they registered the first monthly fall since 2015.
  • Elsewhere, the PBOC opted against injecting funds into the financial system via 1-Year MLF, keeping the interest rate applied to the operations unchanged at 2.85%.
  • The PBOC fix was marginally weaker than expected. The 7-pip deviation from analysts' median estimate was not enough to affect price action to any noticeable degree
  • Spot USD/CNH trades at CNH6.7532, down 80 pips on the day. Bears need a fall through Jun 15 low of CNH6.6669 before targeting Jun 3 low of CNH6.6170. Bulls look for a bounce above yesterday's high of CNH6.7918 before taking aim at May 13 high of CNH6.8380.