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Yuan Weaker Post Data

CNH

The PBOC fixed USD/CNY at 6.5010, 5 pips above sell side estimates. Offshore yuan has weakened since the data dump. Industrial production and retail sales both rose above estimates, but the unemployment rate rose while fixed investment was below estimates. The CFETS RMB Index has dipped 0.16 to 96.90.

  • Some of the positive effect can be attributed to a low base, but overall suggests the 6% target for GDP growth is achievable. Following the release the NBS said China's economy could show a sharp rebound in Q1 from a year earlier, and the economic recovery is likely to be uneven. The NBS also noted China needs to step up support for consumption.

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