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Chinese Yuan Suffers from Poor Data, Sino-US Trade Quarrel

May 15, 2019 at 12:17 by Vladimir Vyun

A fan of 50-yuan billsThe Chinese yuan declined against the US dollar today after almost all Chinese macroeconomic indicators released today missed expectations. The developments in the US-China trade negotiations were not good for the currency as well.

The National Bureau of Statistics of China reported that fixed asset investment rose 6.1% in the first four months of this year. That is compared to the 6.3% increase logged in the previous reporting period and 6.4% predicted by analysts.

Industrial production rose 5.4% in April, year-on-year. It was a much slower growth than 6.5% promised by economists and 8.5% registered in March.

Retail sales rose 7.2% last month from a year ago. Experts had promised about the same 8.7% rate of growth as in the preceding month.

The unemployment rate was the only positive piece of data, showing a decline from 5.2% to 5.0%.

Meanwhile, reports said that China scrapped 30% of the draft trade deal with the USA. The document shrank from 150 pages to 105 pages as Chinese officials objected to what they have called “an unequal treaty”.

USD/CNY rallied from 6.9034 to 6.9146 as of 12:02 GMT today after touching the daily low of 6.8932 earlier.

If you have any questions, comments, or opinions regarding the Chinese Yuan, feel free to post them using the commentary form below.

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