We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • 🇺🇸 USD Consumer Credit (OCT), Actual: $18.908b Expected: $16.000b Previous: $9.579b https://www.dailyfx.com/economic-calendar#2019-12-06
  • The @UMich consumer sentiment report printed 99.2 this morning and helped propel a risk-on mood across markets while the $USD extended its intraday rally. Get your market update from @FxWestwater here:https://t.co/sVwGakRiY6 https://t.co/6z3JhITOsh
  • RT @LizAnnSonders: GDPNow for Q4 from @AtlantaFed now at 2%, at top end of #BlueChipConsensus https://t.co/1ds63mLqxH
  • 🇺🇸 USD Consumer Credit (OCT), Actual: 18.91B Expected: $16.000b Previous: $9.513b https://www.dailyfx.com/economic-calendar#2019-12-06
  • Heads Up:🇺🇸 USD Consumer Credit (OCT) due at 20:00 GMT (15min), Actual: N/A Expected: $16.000b Previous: $9.513b https://www.dailyfx.com/economic-calendar#2019-12-06
  • Spot FX Update: $EUR 1.1056 $JPY 108.5670 $GBP 1.3139 $CAD 1.3263 $CHF 0.9899
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.09% Gold: -1.09% Silver: -2.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/tXVk1UGkMi
  • After an incredibly quiet November, the stock market has continued to record levels. Get your market update from @PeterHanksFX here: https://t.co/LMjHf0xkgn https://t.co/4CQzuvHGRU
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.09%, while traders in France 40 are at opposite extremes with 78.67%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/wAXEIzWGVz
  • The 5-week ATR on $AUDUSD is the lowest since November 2002. This pair is ready for a breakout...and breakthrough or cascade on US-China trade war could provide it https://t.co/Ort3VHmnfW
China's Market News: High Costs, Low Sales Challenge Chinese Producers

China's Market News: High Costs, Low Sales Challenge Chinese Producers

2017-03-14 17:07:00
Renee Mu, Currency Analyst
Share:

This daily digest focuses on Yuan rates, major Chinese economic data, market sentiment, new developments in China’s foreign exchange policies, changes in financial market regulations, as well as market news typically available only in Chinese-language sources.

- Yuan’s overnight borrowing cost, HIBOR O/N, bounced up on Tuesday following a drop on Monday.

- Fixed assets investment and retail sales show weak momentum in Chinese manufacturing firms.

- Would you like to know more about trading? DailyFX webinars are a great place to start.

To receive reports from this analyst,sign up for Renee Mu’ distribution list.

Yuan Rates

The overnight Yuan’s funding cost in Hong Kong, HIBOR, rebounded to 3.5887% on Tuesday, after it dropped to 3.0000% on Monday from 3.1647% last Friday. Amid the elevated Yuan’s borrowing cost, the USD/CNH failed to break above a key resistance of 6.9088 (61.8% retracement of the January drop). Tomorrow, Fed will release the March rate decision, with a greater than 90% probability for a hike. More importantly, the Fed’s plan for future rate hikes may determine trends for Dollar pairs including the Dollar/Yuan.

Key Chinese Economic Indicators

China’s fixed assets investment expanded 8.9% in the first two months of 2017 on an annualized basis, beating both a forecast of 8.2% and the growth of 8.1% in January to December 2016. In specific, private investment in fixed assets grew at 6.7% in January to February, significantly higher than the accumulated rate of 3.2% in the previous month. We discussed that investment in fixed assets, especially private investment in fixed assets, are important indicators to evaluate the health of China’s economy.

China’s statistics bureau reports accumulated monthly growth rates for fixed assets investment, rather than the growth rate for a single month.

Despite of the faster expansion in January to February, the breakdown of private investment in fixed assets revealed some issues. Investment in oil, gas and mining industries increased +116.1% in the first two months, following a -6.0% contraction in the previous month. This is likely driven by the soaring energy prices, which have already sent Producer Price Index to an 8-year high. On the other hand, the average growth of investment in the manufacturing industry remained unchanged at 2.9%. This indicates manufacturing firms are still less interested to expand their business amid declining global demand and domestic production cuts; the overall condition for manufacturing firms have not yet improved.

China's Market News: High Costs, Low Sales Challenge Chinese Producers

Data downloaded from China’s statistics bureau; chart prepared by Renee Mu.

China’s retail sales rose 9.5% in January to February, below expectations. In specific, auto sales, which has been a major contributor to total sales, dropped -1.0% over this period. This hints declining domestic demand: Chinese consumers may have become more price-sensitive as income growth slows down. Falling sales coupled with rising energy and raw material costs will likely further dampen Chinese producers’ conditions and in turn, add difficulties for the country to achieve its annual growth target.

To receive reports from this analyst,sign up for Renee Mu’ distribution list.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.