Chinese Yuan (CNH) Muted While China's Economic Recovery Slows
USD/CNH Price Analysis & News
- Chinese Data Reinforces Slowing Economic Recovery View
- Yuan Muted as Traders Await FOMC
China’s Economic Recovery is Moderating
A broadly softer set of Chinese data than expected and thus reinforcing the view that China’s economic recovery moderating. Industrial production rose 8.8% in May, which had been slower than the prior month (9.8%) and expectations (9.0%), this had been a similar case for retail sales, which rose 12.4%, compared to 13.6% expected.
The China Stats Bureau noted that there are still unstable and uncertain factors in the global economic recovery, one of which has been the rise in raw material prices, while China has also looked to address the appreciation in the Yuan.
Muted Reaction as Traders Await FOMC
The market reaction to the data had been relatively muted as market participants await the Federal Reserve meeting. For now, USD/CNH remains anchored around 6.4000 with the pair maintaining a 6.3700-6.4200 range.
Chinese Yuan Chart: Daily Time Frame
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