The Chinese yuan is strengthening midweek as foreign exchange markets are taking a break from combing through data. But investors and officials are weighing decisions that may or may not boost national growth, including in the rural areas of the world’s second-largest economy.
The Chinese yuan is gaining against major currency rivals on Monday as it is being supported by US-China trade talk momentum and better-than-expected January trade data. The yuan’s ascent was capped on disappointing auto sales figures and future industry projections.
The US dollar gained on most major currencies during the past trading week but fell against commodity currencies. The reason for that was optimism about Sino-US trade talks, which led to risk appetite on markets.
The Australian dollar was trading strong at the beginning of the Thursday’s trading session, though it has retreated by now. The rally was a result of positive macroeconomic data in China — Australia’s biggest trading partner.
The US dollar was weak in the first half of Wednesday’s trading session but reversed losses versus some currencies later, erasing them against others outright. Slight miss of inflation print did not prevent the rebound. In fact, the greenback climbed after the worse-than-expected data.
The Chinese yuan is surging midweek as investors are optimistic about Washington and Beijing nearing a new trade agreement that would end this year-long standoff between the world’s two largest economies. Although President Donald Trump and President Xi Jinping will not meet prior to the March 1 deadline, both sides are positive that crucial developments can be made in the final days of the trade truce.
The Chinese yuan is weakening to kick off the trading week as a state-run newspaper anticipates economic growth to slump to a historically-low level in the first quarter. Investors are also combing through the latest forex exchange reserve data.
The US dollar rallied against most other currencies today. The major reasons for the rally were positive macroeconomic data released in the United States on Wednesday and optimism about the trade talks between the USA and China.
The Chinese yuan is ignoring negative market sentiment on Tuesday, despite a myriad of warnings pertaining to the national economy. Beijing has experienced a significant slowdown in recent months, stemming mostly from the US-China trade war. Even though it looks like both sides are inching towards a new trade agreement, there is still growing pessimism regarding growth.
The Australian dollar traded flat-to-lower today after the release of underwhelming macroeconomic reports in Australia. Economic data in China, Australia’s biggest trading partner, was neutral, having a limited impact on the currency.
